Title insurance provider First American Financial (NYSE:FAF) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
First American Financial beat analysts’ revenue expectations by 6.2% last quarter, reporting revenues of $1.98 billion, up 40.7% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is First American Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting First American Financial’s revenue to grow 5.6% year on year to $1.78 billion, slowing from the 17.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First American Financial has missed Wall Street’s revenue estimates three times over the last two years.
Looking at First American Financial’s peers in the property & casualty insurance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2.5%, and Allstate reported revenues up 3.4%, topping estimates by 3.5%. Stewart Information Services traded up 2.9% following the results while Allstate was also up 3.9%.
Read our full analysis of Stewart Information Services’s results here and Allstate’s results here.
Investors in the property & casualty insurance segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. First American Financial is up 7.9% during the same time and is heading into earnings with an average analyst price target of $76.80 (compared to the current share price of $65.63).
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