Nationwide, Irvine’s Standard Pacific Corp. boomed in the first quarter, with a 94% rise in profits versus a year ago, the company said late Thursday. In Southern California, the company experienced a decline in orders for new homes.
The homebuilder earned $82 million in profit in the first quarter, nearly double the $42 million earned a year ago. Its revenues rose 56% to $836 million.
Standard Pacific raised its earnings estimate for the year to $11.20 per share, up 7% from its previous estimate of $10.50. The company said sales were strong in its various markets, and profit margins expanded.
That’s in contrast from Newport Beach-based William Lyon Homes Inc, which previously announced it expects a drop in sales and profits this year.
Standard Pacific is more geographically diversified than William Lyon. Standard sells homes in seven states, including Florida and the Carolinas.
Still, the homebuilder logged 22% less orders for new homes in Southern California in the first quarter, for a total of 508 orders.
Southern California, and Orange County in particular, historically has been important for Standard as a source of rising home prices and fatter profit margins.
Orange County’s housing market hit a soft patch in summer, but has mostly recovered of late, brokers said.
Standard Pacific’s increased earnings estimate is a reflection of its doing more business in other states.
Its stock price, hit lately on a decline in orders for homes, rose 5% in midday trading Friday to a little more than $71.
