Why REX American Resources (REX) Shares Are Gaining Today - REX American Resources (NYSE:REX)

REX American Resources Corp REX reported Q1 2023 net sales and revenue rose 9.5% Y/Y to $212.7 million, beating the consensus of $183.0 million.
Revenues were led by higher quantity sales of ethanol (71.5 million vs. 64.5 million a year ago), dried distillers grains, and distillers corn oil, along with increased selling prices for dried ($244.85 vs $218.90 a year ago) and modified ($127.58 vs. $118.09 a prior year) distillers grains.
Gross profit rose 26.2% Y/Y to $15.0 million.
EPS of $0.30 beat the consensus of $0.08.
Operating cash flow stood at negative $(10.6) million vs $(17.7) million in prior year.
As of April 30, 2023, REX had cash and equivalents of $265.8 million.
REX's NuGen energy, an ethanol plant in South Dakota, partnered with Summit Carbon Solutions for transformative carbon capture and storage project.
CEO Zafar Rizvi commented "We continue to strategically invest in initiatives that we expect will generate attractive rates of return, including enhanced production and energy efficiency at our plants, which are intended to reduce the carbon intensity of our plants. In addition, we continue to advance our One Earth carbon capture project and remain excited by the significant opportunities this initiative holds."
Price Action: REX shares are trading higher by 12.2% at $35.14 on the last check Thursday.

Why REX American Resources Shares Are Gaining Today