AXR

Shares of AMREP Corporation AXR have lost 10.5% since the company reported its results for the quarter ended April 30, 2026. This compares with a 0.6% gain for the S&P 500 Index over the same period. Over the past month, AXR shares have plunged 9.8%, while the S&P 500 has decreased 1.4%. For the fourth quarter of fiscal 2026 ended April 30, 2026, AMREP reported revenues of $11 million, down from $11.2 million in the year-ago quarter. Net income declined sharply to $1.3 million from $3.9 million a year earlier, while earnings per share (EPS) fell to $0.24 from $0.73. Lower profitability reflected weaker gross profit, which declined to $4.4 million from $5.5 million, and a significantly higher tax provision, despite continued non-operating income of $0.4 million. For fiscal 2026, AMREP reported revenues of $52.8 million, up 6.3% from $49.7 million in fiscal 2025, driven by stronger homebuilding activity despite softer land sales. Net income declined 19.1% year over year to $10.3 million, while diluted EPS fell 19.4% to $1.91 from $2.37. Within AXR’s operating segments, land sale revenues decreased 20% to $20.6 million as developed residential land sales slowed, partly offset by higher commercial and undeveloped land sales. Home sale revenues rose 35% to $28.7 million, reflecting higher home deliveries and an increase in average selling prices. Other revenues climbed 27% to $3.6 million, supported by higher landscaping and miscellaneous revenue streams. The homebuilding business provided the primary growth engine during the year. AMREP sold 65 homes compared with 50 a year earlier, while the average selling price increased 3.8% to $441,000 from $425,000. As of April 30, 2026, AXR had 75 homes in production, including 24 under contract representing $12.9 million of expected future home sale revenues, subject to cancellations and change orders. Land development remained more challenging. Land sale revenues fell as developed residential acreage sold declined to 16.8 acres from 28.6 acres in the prior year. However, sales of developed commercial land and undeveloped land partly offset the decline. Management noted that results from undeveloped land sales can fluctuate significantly depending on the timing and size of transactions. AMREP Corporation price-consensus-eps-surprise-chart | AMREP Corporation Quote Although net income declined, operating performance showed mixed trends for fiscal 2026. Operating income edged up 2.4% to $12.4 million from $12.1 million as stronger revenues offset higher operating expenses. Land sale gross margin improved to 61% from 52%, benefiting from reimbursement mechanisms and the mix of properties sold. Home sale gross margin also improved to 24% from 21%, although rising building material and skilled labor costs, together with increased customer incentives, continued to pressure profitability. General and administrative expenses increased 24% to $9 million for fiscal 2026. Land development administrative costs rose 36%, primarily because of higher property taxes, while homebuilding administrative expenses increased 15% due to higher payroll, benefits and professional service costs. Corporate administrative expenses increased 5%. Management attributed the year's performance to continued delays in municipal approvals, infrastructure availability, contractor schedules and utility response times across both operating segments. AXR also cited elevated construction costs, inflation and higher mortgage rates as factors weighing on housing affordability and demand. To adapt to these conditions, AMREP increased land and home prices where possible while also offering sales incentives, reducing home and lot sizes, slowing housing starts and certain land development projects, and leasing completed homes when sales demand softened. AXR emphasized that these market conditions contributed to variability in both revenues and margins. AMREP ended fiscal 2026 with cash, cash equivalents and restricted cash of $52.7 million, up from $39.9 million a year earlier, supported by operating cash flow of $12.9 million. The company stated that it believes existing liquidity, operating cash flow and available bank financing are sufficient to fund anticipated spending during fiscal 2027. While AXR did not issue formal financial guidance, management indicated that revenues from developed residential land sales are expected to decline in fiscal 2027 because it has intentionally slowed certain development projects amid affordability challenges, market uncertainty and permitting delays. At the same time, management expects continued investment in homebuilding while monitoring inflation, mortgage rates, labor availability and broader housing demand. AMREP did not disclose any acquisitions, divestitures or major restructuring initiatives during fiscal 2026. The company continued expanding its owned residential rental portfolio, increasing leased homes to 28 from 21 a year earlier as it opportunistically leased completed homes in response to softer buyer demand. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMREP Corporation (AXR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of AMREP Corporation AXR 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%. 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. 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-eps-surprise-chart | AMREP Corporation Quote 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. 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. 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. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMREP Corporation (AXR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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-eps-surprise-chart | AMREP Corporation Quote 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. 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 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. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMREP Corporation (AXR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research