REX American Resources Corporation (NYSE:REX) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that REX American Resources will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for REX American Resources from its single analyst is for revenues of US$675m in 2022 which, if met, would be a sizeable 81% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 1,131% to US$5.99. Prior to this update, the analyst had been forecasting revenues of US$533m and earnings per share (EPS) of US$5.48 in 2022. The most recent forecasts are noticeably more optimistic, with a very substantial lift in revenue estimates and a lift to earnings per share as well.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that REX American Resources is forecast to grow faster in the future than it has in the past, with revenues expected to display 81% annualised growth until the end of 2022. If achieved, this would be a much better result than the 3.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.3% annually. So it looks like REX American Resources is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at REX American Resources.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for REX American Resources going out as far as 2024, and you can see them free on our platform here.
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