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AXR Stock Gains Following Q1 Earnings as Margins and Profit Strengthen
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Shares of AMREP Corporation (AXR - Free Report) have gained 10.1% since the company reported its earnings for the quarter ended July 31, 2025. This compares with a 1.6% gain for the S&P 500 Index during the same period. Over the past month, the stock has risen 10.2% compared with the broader market’s 2.9% growth.
AXR’s Financial Performance Overview
For the first quarter of fiscal 2026, AMREP posted revenues of $17.9 million, a decline of 6.5% from $19.1 million in the prior-year period. Despite the top-line contraction, net income rose 15.5% year over year to $4.7 million from $4.1 million, reflecting stronger profitability. Diluted earnings per share came in at $0.87, up 14.5% from $0.76 a year ago.
Segmentally, home sale revenues increased 6.4% year over year to $9.6 million on higher unit sales and pricing mix, while land sale revenues fell 19.8% year over year to $7.5 million due to lower volumes of developed residential lots sold. Other revenues, which include landscaping and miscellaneous services, inched up 4.9% year over year to $0.8 million.
AMREP’s Segmental Dynamics
Land Development: Revenues dipped 19.8% to $7.5 million from $9.3 million, mainly due to fewer acres of developed residential land sold — 5.6 acres versus 11.9 acres in the prior year. However, the segment benefited from improved gross margins, which expanded to 69% from 48%, driven by reimbursements for infrastructure costs and favorable lot demand.
AMREP sold 495 acres during the quarter, up significantly from 30 acres in the year-ago period, though revenues declined due to a heavier mix of lower-priced undeveloped acreage. Developed residential lots generated $755,000 per acre, while commercial parcels fetched $303,000 per acre.
Homebuilding: Revenues climbed 6.4% to $9.6 million from $8.9 million, supported by the sale of 22 homes compared with 21 in the year-ago quarter. The average selling price increased 1.4% to $434,000 from $428,000. Gross margins improved notably to 25% from 19% a year earlier, reflecting better location mix and pricing discipline, although higher labor and material costs, as well as increased buyer incentives, tempered gains.
At the end of July, AXR had 62 homes in production, including 24 under contract, representing roughly $11.5 million of expected revenues upon closing. This compares with 64 homes in production and 17 under contract one year ago, valued at $7.9 million.
AXR’s Other Key Business Metrics
Operating income rose 23.1% to $6.1 million from $4.9 million in the prior-year quarter. The company also generated $456,000 in net interest income, up 62.3% from $281,000, benefiting from higher interest rates and investment balances. General and administrative expenses increased 13.2% to $1.8 million from $1.6 million, reflecting higher marketing, compensation and professional service costs.
AMREP ended the quarter with $49.4 million in cash, cash equivalents and restricted cash, up from $39.9 million as of April 30, 2025, strengthening its liquidity position. Real estate inventory decreased to $64.8 million from $66.8 million, while investment assets rose to $15.9 million from $14.9 million during the same time. The company leased 27 homes to tenants as of July 31, up from 21 at the end of April, reflecting a strategy to balance sales with rental opportunities amid affordability constraints.
AMREP Corporation Price, Consensus and EPS Surprise
AMREP’s Management Commentary and Market Conditions
Management noted that revenue performance can fluctuate significantly depending on the timing and nature of specific transactions, as well as the type and location of properties sold. The quarter’s results demonstrate how shifts in product mix and customer demand influenced gross margins across both land and home sales. Rising input costs for labor and materials, alongside the need for buyer incentives, continue to weigh on profitability, though pricing discipline and higher lot demand provided an offset.
Factors Influencing AXR’s Headline Numbers
The revenue decline stemmed mainly from reduced land sales, particularly fewer developed residential lots. However, profitability expanded because land sales carried significantly higher gross margins compared to last year. Meanwhile, the homebuilding segment showed resilience, generating higher revenue from modestly greater unit volume and stronger pricing.
AMREP’s Guidance
AMREP did not issue formal quantitative guidance for the upcoming quarters. However, management’s commentary emphasized a backlog of 24 homes under contract, representing approximately $11.5 million in expected revenues, which should provide visibility into near-term performance. The firm also reaffirmed that prior results are not necessarily indicative of future outcomes, citing variability in land and home sales.
AXR’s Other Developments
In August 2025, AMREP Southwest Inc., a subsidiary of AMREP, amended its revolving line of credit facility with BOKF, NA dba Bank of Albuquerque. The maximum borrowing capacity was increased by $750,000 to $6.5 million, and the maturity was extended to Aug. 15, 2028. This enhances financial flexibility to support land development and homebuilding operations.
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AXR Stock Gains Following Q1 Earnings as Margins and Profit Strengthen
Shares of AMREP Corporation (AXR - Free Report) have gained 10.1% since the company reported its earnings for the quarter ended July 31, 2025. This compares with a 1.6% gain for the S&P 500 Index during the same period. Over the past month, the stock has risen 10.2% compared with the broader market’s 2.9% growth.
AXR’s Financial Performance Overview
For the first quarter of fiscal 2026, AMREP posted revenues of $17.9 million, a decline of 6.5% from $19.1 million in the prior-year period. Despite the top-line contraction, net income rose 15.5% year over year to $4.7 million from $4.1 million, reflecting stronger profitability. Diluted earnings per share came in at $0.87, up 14.5% from $0.76 a year ago.
Segmentally, home sale revenues increased 6.4% year over year to $9.6 million on higher unit sales and pricing mix, while land sale revenues fell 19.8% year over year to $7.5 million due to lower volumes of developed residential lots sold. Other revenues, which include landscaping and miscellaneous services, inched up 4.9% year over year to $0.8 million.
AMREP’s Segmental Dynamics
Land Development: Revenues dipped 19.8% to $7.5 million from $9.3 million, mainly due to fewer acres of developed residential land sold — 5.6 acres versus 11.9 acres in the prior year. However, the segment benefited from improved gross margins, which expanded to 69% from 48%, driven by reimbursements for infrastructure costs and favorable lot demand.
AMREP sold 495 acres during the quarter, up significantly from 30 acres in the year-ago period, though revenues declined due to a heavier mix of lower-priced undeveloped acreage. Developed residential lots generated $755,000 per acre, while commercial parcels fetched $303,000 per acre.
Homebuilding: Revenues climbed 6.4% to $9.6 million from $8.9 million, supported by the sale of 22 homes compared with 21 in the year-ago quarter. The average selling price increased 1.4% to $434,000 from $428,000. Gross margins improved notably to 25% from 19% a year earlier, reflecting better location mix and pricing discipline, although higher labor and material costs, as well as increased buyer incentives, tempered gains.
At the end of July, AXR had 62 homes in production, including 24 under contract, representing roughly $11.5 million of expected revenues upon closing. This compares with 64 homes in production and 17 under contract one year ago, valued at $7.9 million.
AXR’s Other Key Business Metrics
Operating income rose 23.1% to $6.1 million from $4.9 million in the prior-year quarter. The company also generated $456,000 in net interest income, up 62.3% from $281,000, benefiting from higher interest rates and investment balances. General and administrative expenses increased 13.2% to $1.8 million from $1.6 million, reflecting higher marketing, compensation and professional service costs.
AMREP ended the quarter with $49.4 million in cash, cash equivalents and restricted cash, up from $39.9 million as of April 30, 2025, strengthening its liquidity position. Real estate inventory decreased to $64.8 million from $66.8 million, while investment assets rose to $15.9 million from $14.9 million during the same time. The company leased 27 homes to tenants as of July 31, up from 21 at the end of April, reflecting a strategy to balance sales with rental opportunities amid affordability constraints.
AMREP Corporation Price, Consensus and EPS Surprise
AMREP Corporation price-consensus-eps-surprise-chart | AMREP Corporation Quote
AMREP’s Management Commentary and Market Conditions
Management noted that revenue performance can fluctuate significantly depending on the timing and nature of specific transactions, as well as the type and location of properties sold. The quarter’s results demonstrate how shifts in product mix and customer demand influenced gross margins across both land and home sales. Rising input costs for labor and materials, alongside the need for buyer incentives, continue to weigh on profitability, though pricing discipline and higher lot demand provided an offset.
Factors Influencing AXR’s Headline Numbers
The revenue decline stemmed mainly from reduced land sales, particularly fewer developed residential lots. However, profitability expanded because land sales carried significantly higher gross margins compared to last year. Meanwhile, the homebuilding segment showed resilience, generating higher revenue from modestly greater unit volume and stronger pricing.
AMREP’s Guidance
AMREP did not issue formal quantitative guidance for the upcoming quarters. However, management’s commentary emphasized a backlog of 24 homes under contract, representing approximately $11.5 million in expected revenues, which should provide visibility into near-term performance. The firm also reaffirmed that prior results are not necessarily indicative of future outcomes, citing variability in land and home sales.
AXR’s Other Developments
In August 2025, AMREP Southwest Inc., a subsidiary of AMREP, amended its revolving line of credit facility with BOKF, NA dba Bank of Albuquerque. The maximum borrowing capacity was increased by $750,000 to $6.5 million, and the maturity was extended to Aug. 15, 2028. This enhances financial flexibility to support land development and homebuilding operations.