Irvine-based homebuilder Standard Pacific Corp. saw its shares surge Friday on a better-than-expected outlook for the first quarter and all of 2007.
The company’s shares closed up 7%. Standard Pacific has a market value of about $2 billion.
A day before, Standard Pacific reported a big fourth-quarter loss on charges for land it hasn’t been able to build on amid the housing slowdown.
The company lost $98.4 million, versus a profit of $154.9 million a year earlier. A $291 million charge from revaluing land and lost deposits on land Standard walked away from fueled the loss.
Revenue for fourth quarter was $1.2 billion, down 8%.
Investors are looking past the grim results, focusing on the company’s guidance. Standard Pacific said first-quarter profits could be nearly $16 million, better than analysts on average expected.
Profits for the year could come in at about $110 million, also above consensus.
The company expects 2007 sales of about $3.3 billion and 8,700 new home deliveries, down from 10,487 in 2006.
