Irvine-based Standard Pacific Corp. swung back to profit in the first quarter, beating analysts’ expectations.
The largest homebuilder based in Orange County rode the momentum off a better-than-expected fourth quarter performance and continued to see increased revenue and new orders into this year.
The company earned $8.5 million, or 2 cents per share, in the first quarter, compared with a loss of $14.8 million, or 4 cents a share, in the same period last year.
Wall Street analysts had expected earnings of a penny a share.
About half of the profit—$4.1 million—was related to the settlement of a property insurance claim.
Home sale revenue increased 53% to $220.3 million. The growth was primarily driven by an increase in new home deliveries and higher home prices.
Standard Pacific completed sales of 642 homes in the first three months of this year, up 46% from the year-ago quarter. It also counted 934 contracts for new homes, up 43% from the year-ago quarter.
The builder’s average home price ticked up 5% to $343,000.
“There may be some stabilization in the economy and the overall housing market,” Chief Exeutive Scott Stowell said.
Stowell took the top job at the beginning of the year, taking over from turnaround specialist Ken Campbell.
Standard Pacific counts 973 homes in backlog, up 55%. That translates to about $331.9 million in value, a 57% increase from a year earlier.
The company saw 13% cancellation rate for the first quarter, about the same as a year earlier.
