Shares of Irvine-based homebuilder Standard Pacific Corp. took a breather Friday, dipping 2.7% the day after its solid second-quarter earnings release.
The company reported a second-quarter profit of $174 million, up 80% from a year earlier, and revenue of $952 million, up 24%.
It also raised its profit outlook by 32% for 2005.
Standard Pacific’s stock has been on a generally upward trend for months and got a jolt earlier in the week from its announcement of a two-for-one stock split on August 8.
Investors on Friday may be looking at the homebuilder’s 25% rise in selling, general and administrative expenses in the quarter, as well as a 12% drop in Southern California home deliveries to 468 houses and condominiums, not counting joint ventures.
Deliveries, or the turning over of homes to buyers, dropped due to the “slowdown in orders in the second half of 2004 in some of the company’s Southern California markets,” it said in the report.
Nationwide the builder delivered 37% more homes than a year earlier.
Orders for new homes were up in Southern California, but dropped by about half in Northern California to 223 units.
“The decrease in new home orders on a same community basis in this region reflects a lack of product availability due to rapid sellouts in many projects throughout Northern California,” the company said. “Despite the reduced supply of homes for sale, the company was still selling at a weekly rate in excess of one home per project during the quarter and we have less than one completed and unsold unit per project on average.”
And while the average home price in California was up marginally, the company’s overall home price dropped 9% to $346,000, excluding joint ventures.
The company said the decline is due to selling more homes outside the Golden State.
Standard Pacific shares were off 2% to $96.8 on Friday.
