Did REX American Resources' (REX) Profit Beat and Revenue Miss Just Shift Its Investment Narrative?

• Earlier this week, REX American Resources reported second-quarter 2025 earnings per share of $0.43, topping analyst forecasts, while revenue of $158.56 million came in below estimates.
• This mixed performance, with earnings outpacing expectations despite softer revenue, sheds light on the company's near-term cost structure and resilience.
• We will explore how stronger-than-anticipated profitability, despite revenue challenges, may influence REX's investment outlook and future growth assumptions.

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REX American Resources Investment Narrative Recap

To be a REX American Resources shareholder is to believe that its cost discipline and operational resilience can overcome near-term revenue softness and sector volatility, particularly as the company pursues big projects like carbon capture. This quarter’s higher-than-expected earnings per share, despite a revenue miss, does not materially shift the main near-term catalyst, permit approval and progress on the carbon capture project, nor does it change the biggest current risk: logistics cost pressures and export challenges remain significant factors to monitor.

Among recent company announcements, the ongoing share repurchase program stands out as especially relevant. The continued buybacks, with over 1.82 million shares retired since 2021, have helped REX boost earnings per share, offering a cushion when earnings growth is under pressure and earnings forecasts are clouded by unpredictable commodity pricing and regulatory risk.

However, despite recent operational strength, investors should remain aware of the potential for rising freight and logistics costs to impact export-driven revenue in coming quarters...

Read the full narrative on REX American Resources (it's free!)

REX American Resources' outlook projects $839.6 million in revenue and $50.0 million in earnings by 2028. This reflects a 9.3% annual revenue growth rate but a $8.2 million decrease in earnings from the current $58.2 million.

Uncover how REX American Resources' forecasts yield a $49.37 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Fair value estimates from two members of the Simply Wall St Community for REX American Resources range from US$2.09 to US$49.37 per share. As opinions span nearly the entire current trading range, keep in mind that freight and logistics risks have been flagged as key concerns affecting revenue and margin outlooks.

Explore 2 other fair value estimates on REX American Resources - why the stock might be worth less than half the current price!

Build Your Own REX American Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• Our free REX American Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate REX American Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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