Daqo New Energy (DQ) beat analyst estimates this morning, posting huge quarter over quarter growth in the process.  Shares of DQ initially surged at the open, up around 5%, but have gone the way of Jinko Solar (JKS) and given it all back and then some.  The company reported an EPS of .95/share on revenues of $81.9 million vs the analyst estimate for .71/share on revenue of $75 million.  The result was better than where they guided back in January, and marks the 3rd straight quarter of huge quarter over quarter growth with EPS rising 239% and revenue rising 158%.

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Here are some highlights of comments made by CEO Gongda Yao:

– successfully completed the Phase 1 polysilicon debottlenecking project allowing company to increase capacity from 3300MT to 4300MT

– will focus this year on building the Phase 2 polysilicon production facility, commencing the 250MW solar wafer production and expanding PV module capacity

– sees strong demand to begin 2011

For this quarter, the company expects total revenue to be in the range of $81.5 million to $83.5 million while shipping about 1075 MT to 1100 MT of polysilicon.  Shipments of polysilicon make up the bulk of revenue, but the company is continuing to diversify. 

Despite today’s reversal off the morning surge, shares of DQ still look quite bullish on the daily chart.  There is some important support around the $12 level.  If shares can’t hold that level it’s possible they’ll need to retest the lows around the $10 level.