REX American Resources Exceeds Q2 Revenue Expectations, Falls Short On EPS
Portfolio Pulse from Akanksha Bakshi
REX American Resources Corp reported Q2 FY23 net sales and revenue decline of 11.8% Y/Y to $211.98 million, beating the consensus of $195.14 million. The decline reflects a reduction in the quantities sold of ethanol and lower prices for ethanol, dried and modified distillers, grains, and corn oil. Gross profit increased 30.1% YoY to $18.4 million, reflecting lower corn and natural gas pricing. EPS of $0.52 missed the consensus of $0.66. The company announced changes in accounting principles and received COVID-19 relief grants from the U.S.D.A. totaling ~$7.8 million.
August 30, 2023 | 12:56 pm
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REX American Resources reported a decline in Q2 FY23 net sales and revenue but beat consensus estimates. However, EPS fell short of expectations. The company also announced changes in accounting principles.
REX's revenue beat despite a decline is a positive sign, indicating operational efficiency. However, the lower-than-expected EPS could negatively impact investor sentiment. The changes in accounting principles could also introduce uncertainty. Overall, the impact on the stock is likely to be neutral in the short term.
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