First American Financial (FAF) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, First American Financial (FAF) reported revenue of $1.65 billion, down 20.1% over the same period last year. EPS came in at $1.35, compared to $1.97 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.5 billion, representing a surprise of +9.51%. The company delivered an EPS surprise of +40.63%, with the consensus EPS estimate being $0.96.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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- Direct premiums and escrow fees: $615.30 million compared to the $566.79 million average estimate based on two analysts. The reported number represents a change of -31.4% year over year.
Revenues- Net investment income: $150.30 million versus the two-analyst average estimate of $147.46 million. The reported number represents a year-over-year change of +183.6%.
Revenues- Information and other: $250.30 million versus the two-analyst average estimate of $217.72 million. The reported number represents a year-over-year change of -18.7%.
Revenues- Agent premiums: $624.70 million compared to the $575.58 million average estimate based on two analysts. The reported number represents a change of -33.3% year over year.
View all Key Company Metrics for First American Financial here>>>
Shares of First American Financial have returned +5.4% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First American Financial Corporation (FAF) : Free Stock Analysis Report
