First American Financial Earnings: Here’s Why Investors are Ambivalent Now

First American Financial Corporation (NYSE:FAF) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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First American Financial Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 31.03% to $0.38 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 18.62% to $1.15 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: First American Financial Corporation reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.4. It beat the average revenue estimate of $1.08 billion.

Quoting Management: “Market conditions were good in the first quarter with an increase in closed orders that drove our 19 percent revenue growth,” said Dennis J. Gilmore, chief executive officer for First American Financial Corporation. “And we’re pleased that a solid increase in our higher-premium resale and commercial open orders fully offset the decline we experienced in refinance volume.”

Key Stats (on next page)…

Revenue decreased 10.18% from $1.28 billion in the previous quarter. EPS decreased 55.29% from $0.85 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.67 to a profit $0.61. For the current year, the average estimate has moved up from a profit of $1.93 to a profit of $2.07 over the last ninety days.

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