AMREP Reports Third Quarter Fiscal 2024 Results
- None.
- Net income decreased from $16,574,000 in Q3 2023 to $92,000 in Q3 2024, and from $22,107,000 in the first nine months of 2023 to $2,546,000 in the first nine months of 2024. Revenues also declined from $31,833,000 in Q3 2023 to $12,689,000 in Q3 2024, and from $35,975,000 in the first nine months of 2023 to $9,117,000 in the first nine months of 2024.
- In Q3 2023, AMREP had non-cash expenses including a pension settlement expense of $2,336,000 and a tax benefit of $16,071,000 which impacted the comparison with 2024 financials.
Insights
The reported net income of AMREP Corporation for its 2024 fiscal third quarter signifies a substantial decrease when compared to the same period of the prior year. This decline from $16,574,000 to $92,000 could potentially raise concerns among investors regarding the company's profitability and operational efficiency. The decrease in net income is also reflected in the earnings per diluted share, dropping from $3.12 to just $0.02. Such a stark contrast may suggest underlying issues that need to be addressed or could be indicative of significant one-time events that affected the previous year's profitability.
It is also noteworthy that the revenues for the third quarter increased year-over-year, from $9,117,000 to $12,689,000, which could indicate growth in the company's core business activities. However, the nine-month revenue comparison shows a decrease, which might suggest variability in the company's revenue streams or possibly seasonal factors at play. Investors might be interested in the company's strategies to stabilize and grow revenues in future quarters.
The previous year's figures were influenced by a non-cash pre-tax pension settlement expense and a non-cash income tax benefit, which are non-recurring items and could have significantly inflated the net income for that period. When evaluating the company's performance, it is crucial to consider these one-time factors to gain a more accurate picture of the ongoing financial health of the business.
The financial results of AMREP Corporation, particularly the decline in net income, could have implications for the company's stock market performance. Investors often react to earnings reports and a decline of this magnitude could lead to volatility in the company’s stock price. It is essential to analyze the company's market position, competitive landscape and the broader economic environment to understand the potential impact on its stock.
Additionally, the increase in quarterly revenue despite the overall decrease in net income suggests that while AMREP may be growing its sales, it could be facing higher costs or inefficiencies that are impacting its bottom line. Understanding the reasons behind these financial dynamics is crucial for stakeholders to assess the company's future profitability and investment potential.
Given the complexity of the financial results, with both positive and negative indicators, investors and analysts will likely scrutinize the company's forthcoming explanations and strategic plans to address the challenges and leverage growth opportunities in its market segments.
From an economic perspective, the financial performance of AMREP Corporation, as reported, may be influenced by macroeconomic factors such as market demand, input costs and labor market conditions. The substantial year-over-year decline in net income might reflect broader economic trends that could be affecting the industry or the company specifically. For instance, if input costs have risen due to inflationary pressures, this could squeeze profit margins despite increasing revenues.
Moreover, the company's ability to adapt to economic changes and maintain financial stability is critical for long-term success. The reported figures suggest that while the company may be increasing sales, it is not translating into net income at the same rate, which could imply issues with cost management or pricing strategies. An economist would also consider the potential impact of interest rates on the company's debt servicing costs and investment decisions.
Overall, the economic analysis should take into account the cyclical nature of the business, the economic environment and industry-specific challenges to provide a comprehensive view of the company's financial results and future prospects.
HAVERTOWN, Pa., March 08, 2024 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE:AXR) today reported net income of
During the third quarter of 2023, AMREP recognized a non-cash pre-tax pension settlement expense of
More information about the Company’s financial performance may be found in AMREP Corporation’s financial statements on Form 10-Q which have today been filed with the Securities and Exchange Commission and will be available on AMREP’s website (www.amrepcorp.com/sec-filings/).
AMREP Corporation, through its subsidiaries, is a major holder of land, leading developer of real estate and award-winning homebuilder in New Mexico.
| FINANCIAL HIGHLIGHTS | |||||||
| Three Months Ended January 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 12,689,000 | $ | 9,117,000 | |||
| Net income | $ | 92,000 | $ | 16,574,000 | |||
| Earnings per share – basic | $ | 0.02 | $ | 3.14 | |||
| Earnings per share – diluted | $ | 0.02 | $ | 3.12 | |||
| Weighted average number of common shares outstanding – basic | 5,303,000 | 5,284,000 | |||||
| Weighted average number of common shares outstanding – diluted | 5,346,000 | 5,310,000 | |||||
| Nine Months Ended January 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 31,833,000 | $ | 35,975,000 | |||
| Net income | $ | 2,546,000 | $ | 22,107,000 | |||
| Earnings per share – basic | $ | 0.48 | $ | 4.19 | |||
| Earnings per share – diluted | $ | 0.48 | $ | 4.17 | |||
| Weighted average number of common shares outstanding – basic | 5,299,000 | 5,280,000 | |||||
| Weighted average number of common shares outstanding – diluted | 5,341,000 | 5,304,000 | |||||
| CONTACT: | Adrienne M. Uleau Vice President, Finance and Accounting (610) 487-0907 | |
FAQ
What was AMREP Corporation's (AXR) net income for the 2024 fiscal third quarter?
How did AMREP's net income in the first nine months of 2024 compare to the same period in 2023?
What were AMREP's revenues for the third quarter of 2024?
What non-cash expenses did AMREP have in the third quarter of 2023?
