Standard Pacific Earnings: Here’s Why Investors are Ambivalent Now

Standard Pacific Corp. (NYSE:SPF) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Standard Pacific Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 120% to $0.11 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 56.52% to $438.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Standard Pacific Corp. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $538.55 million.

Quoting Management: Scott Stowell, the Company’s Chief Executive Officer commented, “Our strong second quarter performance reflects a continuation of the first quarter’s positive momentum. The demand and pricing power we experienced in nearly all of our markets has resulted in a growing backlog with growing margins, which we believe are strong indicators of future performance.” Mr. Stowell added, “As I reflect back on our results over the first half of the year, I am pleased to see the execution of our strategy driving top line revenue and profitability.”

Key Stats (on next page)…

Revenue increased 20.72% from $363.4 million in the previous quarter. EPS increased 0% from $0.11 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.13. For the current year, the average estimate has moved up from a profit of $0.32 to a profit of $0.37 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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