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Free Post Earnings Research Report: First American Financial’s Q3 Results Beat Market Forecasts

Stock Monitor: 1347 Property Insurance Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors free earnings report on First American Financial Corp. (NYSE: FAF) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=FAF. The Company posted its financial results on October 26, 2017, for the third quarter of the fiscal year 2017. The Santa Ana, California-based Company's total revenues and non-GAAP earnings per share (EPS) grew on a y-o-y basis, outperforming Wall Street's estimates. Register today and get free access to our complimentary member's area where many more reports are available:


Active-Investors.comis currently working on the research report for 1347 Property Insurance Holdings, Inc. (NASDAQ: PIH), which also belongs to the Financial sector as the Company First American Financial. Do not miss out and become a member today for free to access this upcoming report at:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, First American Financial most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:


Earnings Highlights and Summary

During Q3 FY17, First American Financial posted total revenues of $1.52 billion, up from the $1.51 billion recorded at the end of Q3 FY16. The total revenue numbers outperformed market expectations of $1.51 billion.

First American Financial's direct premiums and escrow fees were $651.10 million in Q3 FY17 compared to $649.73 million in the last year's same quarter. The Company's agent premiums increased to $629.19 million in Q3 FY17 versus $625.95 million in Q3 FY16 while information and other revenues amounted to $201.82 million in the reported quarter, up from $188.73 million in Q3 FY16.

The financial services Company reported a net income of $21.38 million, or $0.19 per diluted share, in Q3 FY17 versus $107.32 million, or $0.96 per diluted share, in Q3 FY16. Furthermore, the Company's adjusted net earnings rose to $154.8 million, or $1.08 per diluted share, for Q3 FY17, which outshined market forecasts of $1.00 per diluted share.

Operating Metrics

For the three months ended September 30, 2017, the Company reported personnel costs of $599.38 million versus $438.69 million in the prior year's comparable quarter. The Company's other operating expenses stood at $218.96 million for the reported quarter compared to $219.96 million in Q3 FY16. Provision for policy losses and other claims were $120.35 million in Q3 FY17 compared to $137.02 million in the prior year's corresponding quarter. Furthermore, the Company reported earnings before income taxes of $17.96 million in Q3 FY17 versus $166.93 million in Q3 FY16.

Segment Performance

During Q3 FY17, First American Financial's Title Insurance and Services segment's total revenue came in flat at $1.40 billion. The segment reported income before taxes of $181.2 million in Q3 FY17 compared to $188.7 million in the previous year's same quarter. Additionally, the segment's pre-tax margin stood at 13.0% in Q3 FY17 versus 13.5% in Q3 FY16.

First American Financial's Specialty Insurance segment generated revenues of $118.5 million, which came in above the $109.8 million recorded in the last year's comparable quarter. The segment's income before taxes surged to $6.2 million in the reported quarter from $1.8 million in Q3 FY16. Furthermore, the segment's pre-tax margin increased to 5.2% in Q3 FY17 compared to 1.6% in Q3 FY16.

Balance Sheet

The Company's net cash provided by operating activities was $455.53 million in the first nine months of FY17, compared to $252.22 million in the prior year's corresponding period. The Company had a cash and cash equivalents balance of $1.14 billion as on September 30, 2017, compared to $1.01 billion at the close of books on December 31, 2016.


In a separate press release on November 08, 2017, First American Financial's Board of Directors announced a regular quarterly cash dividend of $0.38 per share, payable on December 15, 2017, to stockholders of record as of December 08, 2017.

Stock Performance Snapshot

November 30, 2017 - At Thursday's closing bell, First American Financial's stock advanced 1.33%, ending the trading session at $55.59.

Volume traded for the day: 578.91 thousand shares, which was above the 3-month average volume of 567.61 thousand shares.

Stock performance in the last month – up 2.15%; previous three-month period – up 13.31%; past twelve-month period – up 47.30%; and year-to-date – up 51.76%

After yesterday's close, First American Financial's market cap was at $6.11 billion.

Price to Earnings (P/E) ratio was at 22.00.

The stock has a dividend yield of 2.73%.

The stock is part of the Financial sector, categorized under the Property & Casualty Insurance industry. This sector was up 0.2% at the end of the session.


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