As you might know, REX American Resources Corporation (NYSE:REX) recently reported its quarterly numbers. Results were roughly in line with estimates, with revenues of US$148m and statutory earnings per share of US$0.70. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Following the recent earnings report, the consensus from lone analyst covering REX American Resources is for revenues of US$627.0m in 2025. This implies an uncomfortable 13% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 34% to US$2.60 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$622.0m and earnings per share (EPS) of US$1.79 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.
The average the analyst price target fell 7.7% to US$60.00, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the REX American Resources' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2025. That is a notable change from historical growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.1% per year. It's pretty clear that REX American Resources' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards REX American Resources following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for REX American Resources going out as far as 2027, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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