DAYTON, Ohio - REX American Resources (NASDAQ:AREC) Corporation (NYSE:REX), a leader in ethanol production, reported a significant earnings beat for the fourth quarter, with a net income per share of $1.16, outpacing analyst expectations by $0.48.
The company's Q4 revenue reached $187.61 million, slightly below the consensus estimate of $190.26 million but still marked a robust performance. The stock responded positively to the news, climbing 4.17% as investors reacted to the earnings beat.
For the fourth quarter of fiscal year 2023, REX American Resources saw a decrease in net sales and revenue by approximately 6% YoY, from $200.2 million in Q4 2022 to $187.6 million in the same period for 2023. Despite the revenue dip, the company achieved a gross profit of $30.4 million, more than doubling from $13.3 million in the prior year's quarter. This surge in profitability is attributed to lower corn and natural gas prices coupled with increased production levels, which led to a Q4 income before income taxes and non-controlling interests of $32.5 million, a substantial rise from $13.3 million in Q4 2022.
The full fiscal year 2023 also painted a positive picture, with net sales and revenue totaling $833.4 million, a slight decrease from $855.0 million in the previous year. However, the company's gross profit for the year saw a remarkable increase of over 100%, rising from $48.6 million in full fiscal year 2022 to $98.2 million in the same period for 2023.
REX's Chief Executive Officer, Mr. Zafar Rizvi, commented on the results, "Achieving the second highest net income per share in the Company's history in 2023 is an incredible outcome, and one which we are very proud of." He highlighted the company's focus on efficient operations and profitability, even as they pursue growth in new areas such as carbon capture and sequestration.
The company also reported progress on its One Earth Energy carbon capture project, with the compression facility expected to complete in the second quarter of 2024. REX ended the fiscal year with a strong balance sheet, boasting $378.7 million in cash, cash equivalents, and short-term investments, and no bank debt.
Looking ahead, REX's management remains committed to sustainable and profitable operations, while awaiting necessary approvals for their ongoing projects, which they believe will contribute positively to the company's bottom line.
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