REX (REX, Financial) recently announced their financial results for the first quarter, revealing a revenue of $158.34 million, a decrease from $161.23 million during the same period last year. Despite the slight drop in revenue, the company's CEO, Zafar Rizvi, remains positive, emphasizing REX's ongoing commitment to financial strength and shareholder value. The company marked its 19th consecutive quarter of profit in its main ethanol business, demonstrating resilience and strategic focus.
In addition to its earnings success, REX repurchased over 822,000 shares, showcasing a proactive approach to enhance shareholder returns. The company continues to explore avenues for future growth and is dedicated to adapting its strategies to meet upcoming challenges. Rizvi expressed confidence that adhering to core values positions REX for sustained profitability and success in the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for REX American Resources Corp (REX, Financial) is $50.00 with a high estimate of $50.00 and a low estimate of $50.00. The average target implies an upside of 17.23% from the current price of $42.65. More detailed estimate data can be found on the REX American Resources Corp (REX) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, REX American Resources Corp's (REX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for REX American Resources Corp (REX, Financial) in one year is $30.45, suggesting a downside of 28.6% from the current price of $42.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the REX American Resources Corp (REX) Summary page.
REX Key Business Developments
Release Date: March 26, 2025
- Ethanol Sales Volume: 289.7 million gallons in fiscal year 2024, up from 285.9 million gallons in 2023.
- Average Ethanol Selling Price: $1.71 per gallon for the full year 2024; $1.64 for Q4 2024.
- Dried Distillers Grain (DDG) Sales Volume: 632,000 tons in 2024, down 3% from 652,000 tons in 2023.
- Average DDG Selling Price: $160.37 per ton for the full year; $143.81 per ton for Q4 2024.
- Modified Distillers Grain Sales Volume: 70,000 tons in 2024, up from 54,000 tons in 2023.
- Corn Oil Sales Volume: 88.1 million pounds in 2024, up 1% from 87.5 million pounds in 2023.
- Average Corn Oil Selling Price: $0.44 per pound for the full year and Q4 2024.
- Gross Profit: $91.5 million in 2024, down from $98.2 million in 2023.
- SG&A Expenses: $27.1 million in 2024, down from $29.4 million in 2023.
- Interest and Other Income: $19.2 million in 2024, up 22% from $15.7 million in 2023.
- Net Income Attributable to Shareholders: $58.2 million in 2024, down from $60.9 million in 2023.
- Diluted Net Income Per Share: $3.30 in 2024, down from $3.47 in 2023.
- Share Repurchases: 654,276 shares repurchased, approximately 3.7% of outstanding shares.
- Cash and Cash Equivalents: $359.1 million at fiscal year-end 2024, down from $378.7 million in 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- REX American Resources Corp (REX, Financial) achieved a slight increase in ethanol sales volume, reaching 289.7 million gallons in fiscal year 2024 compared to 285.9 million gallons in 2023.
- The company completed construction of the capture and compression portions of its carbon capture facility, marking significant progress in its growth projects.
- REX repurchased approximately 373,000 shares in the fourth quarter of 2024 and an additional 281,709 shares in the first quarter of 2025, demonstrating a commitment to delivering value to shareholders.
- The company ended the fiscal year with a strong cash position of $359.1 million and no bank debt, providing financial stability and flexibility.
- REX has maintained 18 consecutive profitable quarters, showcasing consistent financial performance and effective management.
Negative Points
- Gross profit for fiscal year 2024 decreased to $91.5 million from $98.2 million in 2023, primarily due to lower selling prices across all categories.
- The timeline for the completion of the ethanol facility expansion project has been extended beyond the previous target of mid-2025 due to ongoing reviews and inflation.
- Dried distillers grain sales volumes decreased by 3% in fiscal year 2024 compared to 2023, indicating a decline in this segment.
- Net income attributable to REX shareholders decreased to $58.2 million in 2024 from $60.9 million in 2023, reflecting a decline in profitability.
- The company faces potential regulatory challenges, including the possibility of tariffs on ethanol and co-product exports, which could impact future performance.
