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After trading stocks for nearly 15 years and covering the markets religiously for nearly 10, there are certain nuances you pick up on. One is the fact that the blogosphere is riddled with misleading headlines and outright errors. Hey, I’m guilty too at times. It always pays to double check, and also keep in mind that most sites don’t report the non GAAP number, which is the number that analysts use. That’s why you’ll often see me deviate quite a bit from what other sites are reporting.

There is some confusion regarding the Daqo New Energy (NYSE:DQ) report after the bell last night. The headlines would have you believe that the company reported an EPS of .13, but as Auriga reports, the company reported its EPS based on ordinary shares and not on diluted ADS. The non GAAP EPS number based on diluted ADS actually comes in at .51, a 264% increase over the year ago period. Revenues came in at $63.2 million which is more than double the year ago period. Auriga notes that the EPS number based on ADS will be reported beginning next quarter.

“We are very pleased to report our first quarter as a public company with strong operating results,” said Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy. “We exceeded our goals through a combination of record shipment volumes, and significant reduction in our cost of production per unit. We continue to see strong demand for high quality polysilicon from our downstream customers within a favorable pricing environment.”

Looking ahead to next quarter, the company expects a revenue range of $65 – $69 million which would once again be more than double the year ago quarter. Keep in mind too that this number factors in a two week shutdown of its polysilicon operations for maintenance. All in all, a nice report from DQ, and I think traders are selling first and asking questions later. The selling could provide a nice entry point once it stabilizes.

Auriga maintains its Buy rating and $20 price target on DQ.

Disclosure: No positions

Source: Daqo New Energy Earnings: Misleading Headlines Create Low Entry Point