REX American Resources Q1 EPS Doubles Estimates on Strong Ethanol Pricing

REX American Resources (NASDAQ: AREC) shares jumped 4.6% premarket Wednesday after the ethanol producer reported a stellar first quarter, with adjusted EPS of $0.51 far outpacing the $0.26 consensus estimate.

Q1 Highlights and Market Reaction

• Adjusted EPS: $0.51 vs. $0.26 estimate

• Revenue: $158.3 million vs. $161.3 million estimate (-1.8% YoY)

• Gross Profit: $14.3 million (flat YoY)

For context on REX's history of beating—or missing—earnings estimates, investors can review its past performance via the Earnings Historical API, which charts Q1 surprises and subsequent stock reactions over time.

What Powered the Bottom Line

• Improved Ethanol Prices: Offset lower distillers-grains volumes and pricing.

• Consecutive Profits: Marked the 19th straight profitable quarter in the core ethanol business.

• Share Repurchases: 822,000 shares bought back for $32.7 million, underscoring management's confidence.

Balance Sheet Strength and Growth Investments

As of April 30, REX held $315.9 million in cash and short-term investments with zero bank debt, providing ample firepower for ongoing projects. Detailed financial positions—debt levels, liquidity ratios, and more—can be analyzed through the Balance Sheet Statements API.

The company has invested $122.7 million toward carbon-capture and ethanol-capacity expansions (total budget: $220-230 million), including enhancements at its One Earth facility.

What to Watch Next

1. Ethanol Margins: How pricing trends evolve amid feedstock cost fluctuations.

2. Expansion Progress: Timelines for capacity boosts at One Earth and other sites.

3. Volumes vs. Pricing: Whether volume recoveries can complement strong pricing to drive next-quarter revenue growth.