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AXR Stock Dips Post Q1 Earnings as Revenues Fall, Home Sale Margin Down
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Shares of AMREP Corporation (AXR - Free Report) have lost 1% since the company reported its earnings for the quarter ended July 31, 2026. This compares to the S&P 500 Index’s 0.2% gain over the same time frame. Over the past month, the stock lost 0.1% compared with the S&P 500’s 1.8% decline.
AMREP’s Earnings Snapshot
AMREP reported revenues of $6.1 million for the first quarter of fiscal 2027, down 66.1% from $17.9 million in the year-ago period. Net income was $276,000, or 5 cents per share compared with $4.7 million, or 87 cents per share, a year earlier.
Land sale revenues fell 97.7% to $173,000, while home sale revenues declined 48.9% to $4.9 million. Other revenues increased 26.7% to $997,000.
By segment, land development revenues were $1.8 million compared with $9.7 million a year earlier, and the segment recorded a loss of $167,000 against a profit of $4.8 million. Homebuilding revenues were $4.2 million compared with $8.2 million, while segment profit declined to $490,000 from $1.8 million.
AXR’s Other Key Business Metrics
AMREP sold 12 homes during the quarter compared with 22 in the prior-year period, while the average selling price was $407,000 compared with $434,000.
As of July 31, 2026, AXR had 83 homes in production, including 23 under contract representing $12.5 million of expected home sale revenues when closed, subject to cancellations, change orders and sales incentives. A year earlier, it had 62 homes in production, including 24 under contract representing $11.5 million of expected revenues.
As of July 31, 2026, cash, U.S. government securities and restricted cash totaled $49.1 million, down from $52.7 million as of April 30, 2026. Operating activities used $3.6 million of cash during the quarter against $9.5 million provided a year earlier. Real estate inventory increased to $68.9 million from $66.6 million, while investment assets rose to $18.1 million from $16.2 million during the same period.
AMREP Corporation Price, Consensus and EPS Surprise
Management attributed the sharp decline in land sale revenues primarily to lower sales of developed residential, commercial and undeveloped land. AMREP has reduced the number and scope of active land development projects, delayed certain new projects amid market headwinds and uncertainty and placed a more intentional focus on growing its homebuilding business. Entitlement, contractor and infrastructure delays also affected activity. The decline in home sale revenues primarily reflected fewer homes sold, while changes in average selling prices were driven by the location, size and mix of homes sold.
AXR also continued to respond to housing affordability challenges by opportunistically leasing completed homes. As of July 31, 2026, AMREP leased 30 homes to residential tenants compared with 28 as of April 30, 2026.
Factors Influencing AXR’s Results
Total cost of revenues declined 61.4% to $3.8 million. Home sale gross margin was 23% compared with 25% a year earlier, reflecting the location, size and mix of homes sold, along with higher sales incentives and increased prices for building materials and skilled labor. Land sale cost of revenues, net, was negative $400,000 because public improvement district and private infrastructure covenant reimbursements exceeded land sale costs.
General and administrative expenses increased 30.4% to $2.4 million. Land development expenses rose 43%, partly because of costs associated with terminating reimbursement-sharing agreements, while homebuilding expenses increased 15% on higher payroll, benefits and marketing costs. Corporate expenses increased 18%, reflecting higher compensation expense, professional services and director fees.
AMREP’s Outlook
AMREP expects significantly reduced revenues from sales of developed residential land during fiscal 2027, reflecting fewer active land development projects, delays in certain new projects, its increased homebuilding focus and project-related delays.
AXR’s Other Developments
In June 2026, AMREP terminated two agreements with TV Investments, LLC related to sharing assessments collected from private infrastructure reimbursement covenants. The company paid $201,000 and $114,000, respectively, in connection with the terminations.
Separately, AXR disclosed that it ceased providing landscaping services in August 2026.
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AXR Stock Dips Post Q1 Earnings as Revenues Fall, Home Sale Margin Down
Shares of AMREP Corporation (AXR - Free Report) have lost 1% since the company reported its earnings for the quarter ended July 31, 2026. This compares to the S&P 500 Index’s 0.2% gain over the same time frame. Over the past month, the stock lost 0.1% compared with the S&P 500’s 1.8% decline.
AMREP’s Earnings Snapshot
AMREP reported revenues of $6.1 million for the first quarter of fiscal 2027, down 66.1% from $17.9 million in the year-ago period. Net income was $276,000, or 5 cents per share compared with $4.7 million, or 87 cents per share, a year earlier.
Land sale revenues fell 97.7% to $173,000, while home sale revenues declined 48.9% to $4.9 million. Other revenues increased 26.7% to $997,000.
By segment, land development revenues were $1.8 million compared with $9.7 million a year earlier, and the segment recorded a loss of $167,000 against a profit of $4.8 million. Homebuilding revenues were $4.2 million compared with $8.2 million, while segment profit declined to $490,000 from $1.8 million.
AXR’s Other Key Business Metrics
AMREP sold 12 homes during the quarter compared with 22 in the prior-year period, while the average selling price was $407,000 compared with $434,000.
As of July 31, 2026, AXR had 83 homes in production, including 23 under contract representing $12.5 million of expected home sale revenues when closed, subject to cancellations, change orders and sales incentives. A year earlier, it had 62 homes in production, including 24 under contract representing $11.5 million of expected revenues.
As of July 31, 2026, cash, U.S. government securities and restricted cash totaled $49.1 million, down from $52.7 million as of April 30, 2026. Operating activities used $3.6 million of cash during the quarter against $9.5 million provided a year earlier. Real estate inventory increased to $68.9 million from $66.6 million, while investment assets rose to $18.1 million from $16.2 million during the same period.
AMREP Corporation Price, Consensus and EPS Surprise
AMREP Corporation price-consensus-eps-surprise-chart | AMREP Corporation Quote
AMREP’s Management Commentary
Management attributed the sharp decline in land sale revenues primarily to lower sales of developed residential, commercial and undeveloped land. AMREP has reduced the number and scope of active land development projects, delayed certain new projects amid market headwinds and uncertainty and placed a more intentional focus on growing its homebuilding business. Entitlement, contractor and infrastructure delays also affected activity. The decline in home sale revenues primarily reflected fewer homes sold, while changes in average selling prices were driven by the location, size and mix of homes sold.
AXR also continued to respond to housing affordability challenges by opportunistically leasing completed homes. As of July 31, 2026, AMREP leased 30 homes to residential tenants compared with 28 as of April 30, 2026.
Factors Influencing AXR’s Results
Total cost of revenues declined 61.4% to $3.8 million. Home sale gross margin was 23% compared with 25% a year earlier, reflecting the location, size and mix of homes sold, along with higher sales incentives and increased prices for building materials and skilled labor. Land sale cost of revenues, net, was negative $400,000 because public improvement district and private infrastructure covenant reimbursements exceeded land sale costs.
General and administrative expenses increased 30.4% to $2.4 million. Land development expenses rose 43%, partly because of costs associated with terminating reimbursement-sharing agreements, while homebuilding expenses increased 15% on higher payroll, benefits and marketing costs. Corporate expenses increased 18%, reflecting higher compensation expense, professional services and director fees.
AMREP’s Outlook
AMREP expects significantly reduced revenues from sales of developed residential land during fiscal 2027, reflecting fewer active land development projects, delays in certain new projects, its increased homebuilding focus and project-related delays.
AXR’s Other Developments
In June 2026, AMREP terminated two agreements with TV Investments, LLC related to sharing assessments collected from private infrastructure reimbursement covenants. The company paid $201,000 and $114,000, respectively, in connection with the terminations.
Separately, AXR disclosed that it ceased providing landscaping services in August 2026.