A home builder delivering an earnings and revenue beat on home price appreciation? In your wildest dreams? During the housing bust? In foreclosure U.S.A.? Standard Pacific Corp. (SPF) did just that.
SPF earned 4 cents beating consensus 2 cents and sold $317 million of homes while the street expected $263 million. Their homes sold for an average $355,000 compared to last year's $302,000, an 18% increase. The beat was solely due to the California market in which homes sold for an average of $526,000, a whopping $123,000 climb over last year. (Perhaps, SPF may be bringing back the refrain, "wish they all could be California...")
Could this be the start of a come-back in the builders? SPF has been written off as dead. Were the obituaries for Beazer (NYSE:BZH), Hovnanian (NYSE:HOV), KB (NYSE:KBH), and the rest of the group written too soon?
Disclosure: No position SPF