We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AMREP Stock Dips Post Q2 Earnings as Land Sales Slide, Margins Improve
Read MoreHide Full Article
Shares of AMREP Corporation (AXR - Free Report) have lost 8.4% since the company reported earnings for the quarter ended Oct. 31, 2025, compared with a 1.2% decline in the S&P 500 Index over the same period. Over the past month, AMREP shares lost 3.7%, while the benchmark index advanced 2.6%.
AXR’s Earnings Snapshot
For the second quarter of fiscal 2026, AMREP reported net income of $1.2 million, or $0.22 per diluted share, a 70.3% decline from $4 million, or $0.75 per diluted share, in the year-ago quarter. Revenue for the quarter decreased 21.1% year over year to $9.4 million from $11.9 million.
For the first six months of fiscal 2026, net income totaled $5.9 million, or $1.09 per diluted share, down 27.3% from $8.1 million, or $1.51 per diluted share, in the prior-year period, while revenue declined 12.1% to $27.3 million from $30.9 million.
Segmentally, land sale revenues fell 85.9% in the quarter and 45.3% for the six-month period, reflecting fewer land transactions, while home sale revenues rose 44.8% in the quarter and 20.7% for the six months, driven by a higher number of homes sold. Other revenues, including landscaping and rental-related income, increased 18.6% in the quarter and 11.6% for the six-month period.
AMREP’s Other Key Business Metrics
Land sale gross margins improved to 80% in the quarter and 70% for the six-month period, compared with 60% and 52%, respectively, a year earlier, largely due to the mix of properties sold and reimbursements related to infrastructure and impact fees. Home sale gross margins also improved to 25% from 20% in both comparable periods, despite higher input costs.
General and administrative expenses increased 7.2% year over year in the quarter and 10.1% for the six-month period, reflecting higher compensation, professional services and depreciation. Operating income declined 64.4% to $1.1 million in the quarter from $3.1 million a year earlier, reflecting lower land sale activity and higher cost pressures, though partially offset by stronger homebuilding results.
AMREP Corporation Price, Consensus and EPS Surprise
Management highlighted ongoing challenges related to municipal entitlement delays, infrastructure availability and inspection timelines, which have affected both land development and homebuilding activities. The company noted that while pricing strength has helped offset some cost inflation, higher mortgage rates, elevated home prices and broader inflationary pressures have weighed on housing affordability and demand. As a result, AMREP has adjusted its operating strategy by offering sales incentives, reducing certain home prices, slowing housing starts and leasing completed homes to mitigate demand softness.
Factors Influencing AMREP’s Headline Numbers
The year-over-year decline in earnings was primarily driven by a steep reduction in land sale revenues, as the timing and scale of land transactions varied significantly from the prior year. Although homebuilding activity improved, higher construction costs for materials and skilled labor continued to pressure profitability. Interest income remained a positive contributor, though it declined 20.3% on a quarterly basis. Income tax expense also weighed on results, as the prior-year quarter benefited from a tax-related adjustment tied to the termination of the company’s pension plan.
AXR’s Guidance
AMREP did not provide formal earnings or revenue guidance. However, management cautioned that revenues and margins may continue to fluctuate due to market uncertainty, affordability constraints and ongoing delays in development approvals. AXR expects reduced land sale revenues in fiscal 2026 compared with fiscal 2025, given a scaled-back development pipeline and slower project progression amid current market conditions.
AMREP’s Other Developments
During the quarter, AMREP amended its revolving line of credit, extending the maturity to August 2028 and increasing the borrowing capacity to $6.5 million. The company also continued to expand its portfolio of leased homes, ending the quarter with 28 homes rented to residential tenants, up from 21 at the end of the prior fiscal year, reflecting a strategic response to softer homebuying demand. No acquisitions, divestitures or major restructuring activities were reported during the period.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AMREP Stock Dips Post Q2 Earnings as Land Sales Slide, Margins Improve
Shares of AMREP Corporation (AXR - Free Report) have lost 8.4% since the company reported earnings for the quarter ended Oct. 31, 2025, compared with a 1.2% decline in the S&P 500 Index over the same period. Over the past month, AMREP shares lost 3.7%, while the benchmark index advanced 2.6%.
AXR’s Earnings Snapshot
For the second quarter of fiscal 2026, AMREP reported net income of $1.2 million, or $0.22 per diluted share, a 70.3% decline from $4 million, or $0.75 per diluted share, in the year-ago quarter. Revenue for the quarter decreased 21.1% year over year to $9.4 million from $11.9 million.
For the first six months of fiscal 2026, net income totaled $5.9 million, or $1.09 per diluted share, down 27.3% from $8.1 million, or $1.51 per diluted share, in the prior-year period, while revenue declined 12.1% to $27.3 million from $30.9 million.
Segmentally, land sale revenues fell 85.9% in the quarter and 45.3% for the six-month period, reflecting fewer land transactions, while home sale revenues rose 44.8% in the quarter and 20.7% for the six months, driven by a higher number of homes sold. Other revenues, including landscaping and rental-related income, increased 18.6% in the quarter and 11.6% for the six-month period.
AMREP’s Other Key Business Metrics
Land sale gross margins improved to 80% in the quarter and 70% for the six-month period, compared with 60% and 52%, respectively, a year earlier, largely due to the mix of properties sold and reimbursements related to infrastructure and impact fees. Home sale gross margins also improved to 25% from 20% in both comparable periods, despite higher input costs.
General and administrative expenses increased 7.2% year over year in the quarter and 10.1% for the six-month period, reflecting higher compensation, professional services and depreciation. Operating income declined 64.4% to $1.1 million in the quarter from $3.1 million a year earlier, reflecting lower land sale activity and higher cost pressures, though partially offset by stronger homebuilding results.
AMREP Corporation Price, Consensus and EPS Surprise
AMREP Corporation price-consensus-eps-surprise-chart | AMREP Corporation Quote
AXR’s Management Commentary
Management highlighted ongoing challenges related to municipal entitlement delays, infrastructure availability and inspection timelines, which have affected both land development and homebuilding activities. The company noted that while pricing strength has helped offset some cost inflation, higher mortgage rates, elevated home prices and broader inflationary pressures have weighed on housing affordability and demand. As a result, AMREP has adjusted its operating strategy by offering sales incentives, reducing certain home prices, slowing housing starts and leasing completed homes to mitigate demand softness.
Factors Influencing AMREP’s Headline Numbers
The year-over-year decline in earnings was primarily driven by a steep reduction in land sale revenues, as the timing and scale of land transactions varied significantly from the prior year. Although homebuilding activity improved, higher construction costs for materials and skilled labor continued to pressure profitability. Interest income remained a positive contributor, though it declined 20.3% on a quarterly basis. Income tax expense also weighed on results, as the prior-year quarter benefited from a tax-related adjustment tied to the termination of the company’s pension plan.
AXR’s Guidance
AMREP did not provide formal earnings or revenue guidance. However, management cautioned that revenues and margins may continue to fluctuate due to market uncertainty, affordability constraints and ongoing delays in development approvals. AXR expects reduced land sale revenues in fiscal 2026 compared with fiscal 2025, given a scaled-back development pipeline and slower project progression amid current market conditions.
AMREP’s Other Developments
During the quarter, AMREP amended its revolving line of credit, extending the maturity to August 2028 and increasing the borrowing capacity to $6.5 million. The company also continued to expand its portfolio of leased homes, ending the quarter with 28 homes rented to residential tenants, up from 21 at the end of the prior fiscal year, reflecting a strategic response to softer homebuying demand. No acquisitions, divestitures or major restructuring activities were reported during the period.