Shares of local homebuilders Standard Pacific Corp. and William Lyon Homes Inc. fell on Thursday, a day after Hovnanian Enterprises Inc. said that its most recent earnings missed Wall Street expectations.
Irvine-based Standard Pacific’s shares dipped 3% to about $43 on Thursday. Newport Beach-based William Lyon’s stock dropped more than 5% to $151.
Both stocks are up from the beginning of the year.
Hovnanian, based in Red Bank, N.J., said income for the quarter ended July 31 rose 34% to $116 million versus a year ago.
That jump wasn’t good enough for analysts, who expected slightly more, according to Reuters.
Investors appear to be watching for any sign of weakness in the housing market. They also have gotten used to homebuilders consistently beating expectations.
One red flag: Hovnanian said the pace of home price hikes has “moderated.”
William Lyon’s stock has doubled since Chief Executive William Lyon in April offered to buy all shares he doesn’t yet own and take the company private.
His bid was rejected but it spurred interest in the company. Forbes in August ranked it the No. 2 midsized investment in the nation.
