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By Rayk Riechmann
REX American Resources Corp. (NYSE: REX) beat EPS Street estimates by 133%, helping drive shares up 3.2% last week while the broader market struggled.
On Wednesday REX announced 4Q results, with investors celebrating a top-down beat on the back of strong execution and volume growth. (Noteworthy is an increase in REX’s core business, ethanol sales and gross margin improvement.)
As highlighted in our 62-page initiation report (link here), the company is moving towards completion of key investment initiatives to increase production levels and establish carbon capture and compression operations. Rex is now budgeting a total of $220 million to $230 million for both projects combined. We expect an accelerated growth trajectory and top-line expansion as the above capacity comes online.
A robust balance sheet, with no bank debt and $359.1 million in cash, positions REX for flexible investing in growth opportunities and potential share repurchases.
The stock reacted positively to REX’s latest earnings call but remains attractively valued. Click the link below to read our detailed quarterly update report.
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