Rex American Resources Soars on Strong Q2 Results
Rex American Resources (NYSE: REX), a leading ethanol producer, saw its share price climb by 2.4% in early trading on Tuesday, following the release of its better-than-expected second-quarter results.
The company reported adjusted earnings per share of £0.56, exceeding analyst forecasts of £0.43. Revenue also outperformed expectations, reaching £118.5 million compared to the consensus estimate of £116.5 million.
Rex's net income attributable to shareholders surged by 37% year-on-year to £9.9 million in the second quarter. The company attributed this improved performance to lower corn and energy prices, which boosted gross profit despite lower ethanol and co-product pricing.
"The REX team has once again demonstrated its ability to deliver outstanding gross margins and earnings per share," commented CEO Zafar Rizvi. "By focusing on managing our expenses and capitalising on opportunities in the corn market, REX continues to consistently generate positive returns for our shareholders."
Despite a 6% decline in consolidated ethanol sales volumes to 52.1 million gallons in Q2 compared to the same period last year, gross profit increased by 7% year-on-year to £15.8 million.
Rex concluded the quarter with £276 million in cash and short-term investments, with no outstanding bank debt. The company remains on track to complete an expansion of its ethanol production capacity at the One Earth Energy facility by Q1 2025.
This strong performance underscores Rex American Resources' commitment to financial stability and growth, demonstrating its resilience in a dynamic market environment. The company's continued focus on cost management and strategic market opportunities positions it for sustained success in the future.
