UPDATE 2-Standard Pacific Q1 rev lags Street; shares down

* Q1 loss/shr $0.02 vs est loss/shr $0.06

* Rev down 16 pct to $175.4 mln vs est $184.1 mln

* Shares down as much as 5 pct
(Recasts; adds details, analyst comments, updates share

By Divya Sharma

BANGALORE, April 19 (BestGrowthStock) – Standard Pacific Corp
(SPF.N: ) posted a narrower-than-expected quarterly loss, helped
by lower expenses, but its revenue came in below analysts’
estimates as the housing market downturn hurt new home

New home deliveries dropped 22 percent in the first
quarter, the company said in a statement.

Home values and quantities of homes, rather than cost
cutting, are major earnings drivers for homebuilders, Wall
Street Strategies analyst David Urani said.

The impact of a federal homebuyer tax credit and
stabilizing unemployment numbers has fueled talk of a housing
recovery, but uncertainty lingers. Sales of both new and
existing homes fell in February.[ID:nN25217590]

The fall in home deliveries was partly offset by the rise
in average home prices due to a larger proportion of homes
delivered in California, which constitutes about 40 percent of
sales, the company said.

Prices in California have been going up for the last
several months as a lot of the inventory of foreclosed homes is
selling off and supply is coming down, said Urani who has a
“buy” rating on Standard Pacific’s stock.

But the analyst cautioned that the trend might not continue
as more foreclosed homes are expected to flood the housing
market in California.

For the first quarter, the company reported a loss of $5.1
million, or 2 cents a share, compared with a loss of $49.5
million, or 21 cents a share, a year ago.

Revenue fell 16 percent to $175.4 million.

Analysts on average had expected a loss of 6 cents a share,
before special items, on revenue of $184.1 million according to
Thomson Reuters I/B/E/S.

Operating expenses fell 37 percent to $32.8 million.

Shares of the company were down about 4 percent at $5.31 in
mid-day trade Monday on the New York Stock Exchange. They
touched a low of $5.25 earlier in the session.
(Reporting by Divya Sharma in Bangalore; Editing by Maju

UPDATE 2-Standard Pacific Q1 rev lags Street; shares down