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Compared to Estimates, First American Financial (FAF) Q2 Earnings: A Look at Key Metrics

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For the quarter ended June 2024, First American Financial (FAF - Free Report) reported revenue of $1.61 billion, down 2.1% over the same period last year. EPS came in at $1.27, compared to $1.35 in the year-ago quarter.

The reported revenue represents a surprise of -1.20% over the Zacks Consensus Estimate of $1.63 billion. With the consensus EPS estimate being $1.13, the EPS surprise was +12.39%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how First American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Net investment income: $129.90 million versus the two-analyst average estimate of $137.03 million. The reported number represents a year-over-year change of -13.6%.
  • Revenues- Agent premiums: $616.30 million compared to the $610.07 million average estimate based on two analysts. The reported number represents a change of -1.3% year over year.
  • Revenues- Direct premiums and escrow fees: $632.70 million versus the two-analyst average estimate of $613.88 million. The reported number represents a year-over-year change of +2.8%.
  • Revenues- Information and other: $246.60 million versus the two-analyst average estimate of $251.01 million. The reported number represents a year-over-year change of -1.5%.
View all Key Company Metrics for First American Financial here>>>

Shares of First American Financial have returned +8.6% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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