Shares of Irvine-based Standard Pacific Corp. sunk Monday after the homebuilder said it plans to lower its outlook for profits and homes sold for 2006, following a steep drop in new home orders in the past two months.
Standard Pacific’s shares were off 7% in midday trading on Monday. The company counts a market value of about $1.8 billion.
Orders for new homes for April and May were down 40% from a year earlier, the company said late Friday.
Cancellations and softening demand were to blame, according to Standard Pacific.
Standard Pacific said orders were off in Southern California, Northern California, Florida and Arizona, and off slightly in the Carolinas. Orders were up in Texas and Colorado.
The company said it would provide updated guidance for 2006 with its regularly scheduled second-quarter earnings release at the end of July.
AG Edwards downgraded its rating on Standard Pacific to “hold” from “buy.” Bank of America analyst Daniel Oppenheim lowered his target price to $29 from $32. Shares were trading at $27 at midday Monday.
