First American Financial Q2 revenue rises 15%, beats estimates

Overview

• US title insurance provider's Q2 revenue rose 15% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 rose to $2.08, up from $1.53 last year

• Company repurchased 330,405 shares for $20 mln during the quarter

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• COMMERCIAL TITLE GROWTH - Co said results were driven by its commercial business, which posted a 34% revenue increase and higher average revenue per order

• INVESTMENT INCOME - Title segment investment income grew 11%, primarily from higher interest income, despite a decline in the federal funds rate

• INFORMATION AND OTHER REVENUES - Growth in subservicing, non-insured information products, and Canadian refinance activity contributed to higher information and other revenues

Company press release: ID:nBwbb44bNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for First American Financial Corp is $84.00, about 17.2% above its July 21 closing price of $71.65

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Equifax sees downbeat annual revenue amid tough mortgage market

• July 22 - PulteGroup quarterly profit falls as home affordability pressure persists

• July 22 - US 30-year mortgage hits 11-month high, MBA says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)