Title insurance provider First American Financial (NYSE: FAF) will be reporting results this Wednesday after the bell. Here’s what you need to know.
First American Financial beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.58 billion, up 11.1% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is First American Financial a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting First American Financial’s revenue to grow 8.8% year on year to $1.75 billion, a reversal from the 2.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 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 four times over the last two years.
Looking at First American Financial’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Progressive delivered year-on-year revenue growth of 21.3%, beating analysts’ expectations by 1.4%, and Travelers reported revenues up 7.3%, in line with consensus estimates. Progressive traded up 2.2% following the results while Travelers was also up 5.5%.
Read our full analysis of Progressive’s results here and Travelers’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the property & casualty insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. First American Financial is down 6.4% during the same time and is heading into earnings with an average analyst price target of $76.50 (compared to the current share price of $56.43).
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