DAYTON, Ohio - REX American Resources (NASDAQ:AREC) Corporation (NYSE:REX), a prominent ethanol production company, reported a strong fiscal first quarter for 2024, surpassing analyst expectations for earnings per share (EPS) and revenue.
The company announced a Q1 EPS of $0.58, which was significantly higher than the analyst estimate of $0.31. Revenue for the quarter also exceeded forecasts, coming in at $161.2 million against the consensus estimate of $140 million.
The company's financial performance represents a notable improvement compared to the same quarter last year. Despite a decrease in net sales and revenue of approximately 24% from the prior year's $212.7 million, REX American Resources achieved its second-best first-quarter result in company history.
The gross profit for the quarter increased by more than 42% to $14.5 million from $10.2 million in fiscal Q1 2023. This increase in profitability is attributed to decreased corn and natural gas prices, as well as a 4% increase in consolidated ethanol sales volumes, which reached 74.5 million gallons.
REX American Resources' CEO, Zafar Rizvi, commented on the company's achievements, stating, "REX American has continued to turn in industry-leading earnings from our ethanol operations, as well as progressing on our carbon capture and ethanol production expansion projects." He emphasized the company's commitment to profitable and sustainable operations, which is reflected in the progress of the One Earth Energy carbon capture project and the expansion of ethanol production capacity.
The company also highlighted its advancements in the carbon capture initiative, with the construction phase of the One Earth Energy carbon capture and compression facility on track for completion in July 2024. REX has secured 100% of the rights of way for the carbon capture pipeline and more than the necessary subsurface area around the first planned injection well, ensuring the ability to sequester carbon emissions for at least the next 15 years.
Looking ahead, REX American Resources is budgeting $165-$175 million for the carbon capture and ethanol production expansion project. As of the end of fiscal Q1 2024, the company reported a robust balance sheet with $351.8 million in cash, cash equivalents, and short-term investments, and no bank debt.
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