AMREP (AXR) Q2 2026 EPS Drop Reinforces Bearish Narrative on Slowing Earnings Growth

AMREP (AXR) has just posted Q2 2026 results, with revenue of about $9.4 million, basic EPS of roughly $0.22, and net income of around $1.2 million setting the tone for the quarter. The company has seen revenue move from $11.9 million and EPS of about $0.76 in Q2 2025 to $9.4 million and $0.22 in Q2 2026. Trailing 12 month revenue sits near $45.9 million and EPS around $1.97, giving investors plenty to consider on the growth and earnings front as they weigh the latest margins picture.

See our full analysis for AMREP.

With the headline numbers on the table, the next step is to compare them with the dominant market narratives and assess which stories remain intact and which ones the latest margin trends begin to challenge.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Stay Strong At 22.9%

• Over the last 12 months, AMREP converted about $45.9 million of revenue into roughly $10.5 million of net income, giving it a trailing net profit margin of 22.9% compared with 19.5% a year earlier.
• What stands out for a bullish narrative is that high trailing margins and described high earnings quality sit alongside relatively modest growth expectations, which means:
  • Bulls can point to five year earnings growth of about 10.2% per year and the move from 19.5% to 22.9% net margin as evidence that the business has been able to grow profitably, not just grow revenue.
  • At the same time, the forecast that earnings may grow only around 1% per year despite revenue being projected to rise about 10.7% a year suggests future profit growth could be more muted than the recent margin profile alone might imply.

Lumpy EPS Against Slower Growth Outlook

• EPS over the last few quarters has swung from about $0.88 in Q1 2026 and $0.73 in Q4 2025 down to roughly $0.22 in Q2 2026, while trailing 12 month EPS of about $1.97 sits below the prior trailing figure of roughly $2.51 in Q1 2026.
• Critics building a bearish narrative around slower profit growth will see these figures as consistent with the view that earnings may not keep pace with revenue, because:
  • The forecast that earnings increase only about 1% per year contrasts with the roughly 10.7% per year revenue growth forecast and the earlier five year earnings growth of around 10.2% annually, so recent EPS volatility may signal a shift from the past trend.
  • The step down in trailing EPS from about $2.51 to $1.97 over the last two reported trailing periods provides a numerical backdrop for worries that profit growth could flatten even if top line forecasts remain healthy.

Cheap P/E Versus DCF Fair Value

• AMREP trades on a trailing P/E of about 10.1 times compared with roughly 15.2 times for peers, 31.3 times for the US real estate industry, and 19.1 times for the broader US market. However, the share price of $20.16 sits above a DCF fair value of about $10.59.
• This mix of low multiples and a higher than DCF fair value price shapes a nuanced valuation narrative where:
  • Value focused investors can highlight that the P/E discount to peers, the sector and the wider US market lines up with the company’s profitable trailing year, including $10.5 million of net income on $45.9 million of revenue.
  • On the other hand, the fact that $20.16 is materially above the DCF fair value of $10.59 means those same investors need to weigh the attractive relative multiples against a model based view that the stock price already implies more optimism than the cash flow forecast alone would support.

Investors who want to dig deeper into how these numbers line up with longer term stories and valuation views can explore how different community narratives frame AMREP’s mix of growth, profitability and pricing.

Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on AMREP's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

AMREP’s slowing earnings growth, lumpy EPS, and share price trading above DCF fair value all suggest that future returns may be less compelling than they appear.

If that makes you cautious about paying up for uncertain growth, use our these 906 undervalued stocks based on cash flows to quickly focus on companies where prices still look sensible relative to their cash flow potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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