Monday, June 05, 2006

More Bad News for Area Homebuilders

From the Sacramento Business Journal:

Shares of several home-builders dropped Monday, after housing giant Standard Pacific Corp. revised its earnings outlook and its stock was downgraded. Standard Pacific, a major home-builder in the Sacramento region, experienced one of the largest drops during a dismal Monday on Wall Street...Standard Pacific late Friday announced plans to lower its full-year earnings estimates after new-home orders slumped 40 percent during the first two months of the year... Shares of Standard Pacific plummeted $2.57 -- or 8.6 percent -- to $27.43 in trading Monday.

Shares of other home-builders with operations in the Sacramento area followed, with shares of Pulte Homes D.H. Horton (NYSE: DHI) and Pulte Homes Inc. (NYSE: PHM), both down 5 percent. KB Home (NYSE: KBH) stock fell almost 4 percent.


Happy Renter said...

The homebuilders better started slashing prices and moving some houses. They are losing more money in the stock value than they are making.

Happy Renter said...

Saw this on bens blog.

tom stone said...

pick up an sf chronicle,discovery homes is discounting $100k in 12 different developments,and they aren't the only ones(sunday last week)