Why did REX's Q1 2025 earnings fall short?

REX American Resources Corporation's (REX) Q1 2025 earnings fell short, with a reported net income of $12.27 million and an EPS surprise of $0.27, due to several key factors: 1. **Lower Selling Prices for Ethanol and By-Products**: The primary reason for the decrease in net income was lower selling prices for ethanol and by-products. Despite a decrease in corn and natural gas prices, the company's ethanol business faced volatility in corn and ethanol pricing. The Chicago Board of Trade corn prices ranged from $3.62 to $4.97 per bushel, and S&P Global Platts ethanol pricing fluctuated from $1.38 to $2.12 per gallon during the year. This volatility in pricing negatively impacted the company's financial performance. 2. **Weaker Selling Prices Across All Products**: REX reported net sales and revenue of $642.5 million, down from $833.4 million in the previous year, primarily due to weaker selling prices across all products. This decline in revenue was a result of the reduced pricing for ethanol and co-products, which contributed to the lower gross profit and net income. In conclusion, REX's Q1 2025 earnings were affected by lower selling prices for ethanol and by-products, despite a decrease in corn and natural gas prices. This, coupled with weaker selling prices across all products, led to a decline in revenue and gross profit, resulting in a fall in net income. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |REX|REX.N|Rex American|2024 Q2|-17.47396708095398|1.2284E7|169| |REX|REX.N|Rex American|2024 Q3|546.0187831768069|3.1642E7|169| |REX|REX.N|Rex American|2024 Q4|126.52220630372493|2.5298E7|169| |REX|REX.N|Rex American|2025 Q1|83.17910447761194|1.2273E7|169|