First American Financial: Here’s What Investors Need to Know Before Earnings

First American Financial (NYSE:FAF) will report earnings before markets open on Thursday, July 25th. First American Financial Corporation offers title insurance, specialty insurance, and financial services.

Here is your Cheat Sheet to First American Financial Earnings:

Earnings Expectations: Analysts expect earnings of $0.67 per share on revenues of $1.15 billion. Currently, the company’s P/E ratio stands at 8.09.

Analyst Trends:

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 $0.59 to a profit $0.57. For the current year, the average estimate is a profit of $2.06, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how First American Financial has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 4,368 4,047 3,907 3,821 4,542
Diluted EPS ($) NA 2.09 1.20 0.73 2.77

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 1,089.83 1,208.40 1,276.82 1,146.76
Diluted EPS ($) 0.68 0.95 0.85 0.33

Past Performance:
First American Financial has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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