Standard Pacific may post '10 profit, analyst says

AP News
Posted: Nov 30, 2009 1:33 PM

Homebuilder Standard Pacific Corp. could be profitable next year as profit margins continue to improve, a JMP Securities analyst said in a note to investors Monday.

James Wilson restated his "Market Outperform" rating and $4 price target on Standard Pacific after meeting with its management last week, he said.

Wilson expects the homebuilder to earn 5 cents per share next year and post a loss of 41 cents per share this year.

On average, analysts polled by Thomson Reuters project a loss of 8 cents per share next year and a loss of 43 cents per share this year.

Standard Pacific hasn't posted an annual profit since 2006.

Meanwhile, prices are flat or moderately better in each of Standard Pacific's markets except for Florida, while sales patterns are stable, he said.

Wilson also added that Standard Pacific will likely have the opportunity to buy distressed land next year.

Shares of Standard Pacific lost 2 cents to $3.12 in afternoon trading.