Shares of REX American Resources (NYSE:REX) plummeted 6.26% in Wednesday's trading session, despite the company reporting better-than-expected earnings for the first quarter of 2025. The sharp decline suggests investors may be focusing on other aspects of the financial results or future outlook.

REX American Resources reported quarterly earnings of $0.51 per share, surpassing analyst estimates of $0.34 by 50%. However, this represents a 12.07% decrease compared to earnings of $0.58 per share in the same period last year. The company's quarterly sales came in at $158.34 million, missing analyst expectations of $161.27 million by 1.82% and showing a 1.79% decrease from the $161.23 million reported in the previous year.

Despite the earnings beat, investors seem concerned about the company's overall financial performance. The slight decline in sales and revenue, coupled with lower volumes and sales prices for distiller grains, may have contributed to the negative market reaction. Additionally, the company's interest and other income decreased from $5.9 million in the prior year to $4.2 million this quarter. While REX American Resources continues to demonstrate financial stability, the market's response suggests that investors may be looking for stronger growth signals or are concerned about challenges in the ethanol industry.