NEW YORK - Rex American Resources (NASDAQ:AREC) Corporation (NYSE:REX) reported better-than-expected second quarter results on Tuesday, sending its shares up 2.4% in early trading.
The ethanol producer posted adjusted earnings per share of $0.70, surpassing analyst estimates of $0.54. Revenue came in at $148.15 million, topping the consensus forecast of $146 million.
Net income attributable to Rex shareholders rose 37% YoY to $12.4 million in Q2. The company said the improved performance was driven by decreased corn and natural gas prices, which boosted gross profit despite lower ethanol and co-product pricing.
"This quarter the REX team was again able to deliver standout gross margin and earnings per share," said CEO Zafar Rizvi. "By keeping a focus on managing our expenses and seizing on opportunities available to us in the corn market REX continues to consistently deliver positive returns for our shareholders."
Rex reported consolidated ethanol sales volumes of 65.1 million gallons in Q2, down 6% from the same period last year. However, gross profit increased 7% YoY to $19.8 million.
The company ended the quarter with $346 million in cash and short-term investments and no bank debt. Rex said it remains on track to complete an expansion of ethanol production capacity at its One Earth Energy facility by Q1 2025.
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