NEW YORK (TheStreet) -- Shares of REX American Resources Corp. (REX - Get Report) are higher by 10.36% to $100.15 on Wednesday afternoon, after the company reported an increase in 2014 second quarter net income to $21.9 million, or $2.68 per share, compared to $5.8 million, or 71 cents per share for the 2013 second quarter.
The ethanol company attributed its record second quarter profit to "favorable market dynamics combined with the efficiency of our plants."
"During the second quarter, we also made significant strides in further improving our balance sheet and liquidity as we continued to allocate cash from operations to reduce consolidated plant-level debt by 18% to approximately $62 million," the company said.
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However, REX American's net sales declined to $150.2 million for the most recent quarter, from $175.4 million for the year ago quarter, due to reduced ethanol and distillers grains pricing.
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Separately, TheStreet Ratings team rates REX AMERICAN RESOURCES CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate REX AMERICAN RESOURCES CORP (REX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: REX Ratings Report
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