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Tuesday, Apr 14, 2026

Slumping Standard Pacific Nixes Financial Guidance for 2007

Irvine-based homebuilder Standard Pacific Corp. has stopped offering earnings guidance for the rest of the year amid an uncertain housing market.

The company also is withdrawing its prior financial guidance for year, Chief Executive Stephen Scarborough said in a release about the company’s second-quarter.

In February, Standard Pacific came out with a 2007 earnings outlook above Wall Street estimates, despite the slumping housing market.

At the time, the company said it expected a 2007 profit of $113 million, versus analysts’ $105 million.

It had expected 2007 sales of $3.2 billion and $3.3 billion, versus Wall Street’s $2.25 billion.

The guidance withdrawal came after Standard Pacific posted a second-quarter loss of $165.9 million late Thursday.

The company’s homebuilding revenue dropped to $695 million from $1 billion a year ago. Sales of finished homes in California dropped 55% from a year ago. Southern California saw a 63% drop in deliveries.

Standard Pacific is the latest homebuilder to be rocked by slowing national sales, falling prices and tightening standards by mortgage lenders.

The company took a $306 million charge in the quarter to account for diminishing land values.

The news didn’t seem to rattle Wall Street,Standard Pacific’s stock was relatively unmoved in Friday trading.

But its shares fell about 20% earlier in the week on bad news for the housing market.

Standard Pacific has a market value of about $950 million.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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