Daqo New Energy (DQ) stock surged 5.44% in Tuesday's pre-market trading session, rebounding strongly from an initial decline following the release of its second-quarter financial results. The dramatic turnaround was primarily driven by the company's announcement of a $100 million share repurchase program, which appeared to outweigh concerns over disappointing quarterly performance.

The polysilicon manufacturer reported a challenging second quarter, with revenue falling to $75.2 million, significantly below analyst expectations of $140.5 million. The company cited ongoing industry challenges, including overcapacity and high inventory levels, which have pushed market prices below cash cost levels across the solar value chain. Despite these headwinds, Daqo New Energy posted a narrower adjusted loss of $0.86 per American depositary share, compared to a loss of $1.50 in the same quarter last year.

Investors' sentiment shifted positively with the announcement of the share buyback program, which authorizes the company to repurchase up to $100 million of its issued and outstanding ordinary shares or American depositary shares. The program, effective immediately through December 31, 2026, signals management's confidence in the company's long-term prospects and commitment to enhancing shareholder value. Daqo New Energy plans to fund the repurchases primarily from its existing cash balance, demonstrating financial stability despite the current market challenges.