First American Financial Earnings: Here’s Why Shares are Down 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. Shares are down 0.09%.

First American Financial Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 54.41% to $0.31 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Rose 18.23% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: First American Financial Corporation reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.69. It beat the average revenue estimate of $1.22 billion.

Quoting Management: “Our business gained momentum in the second quarter as the housing market continued to improve,” said Dennis J. Gilmore, chief executive officer for First American Financial Corporation. “Strength in our title insurance segment drove revenue up 18 percent. Our commercial division’s performance was particularly strong, with revenues up 35 percent compared with last year.”

Key Stats (on next page)…

Revenue increased 12.36% from $1.15 billion in the previous quarter. EPS decreased 6.06% from $0.33 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.57. For the current year, the average estimate has moved down from a profit of $2.07 to a profit of $2.06 over the last ninety days.

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