Analysts Expect First American Financial Corp (FAF) Will Post Earnings of $1.14 Per Share

Wall Street brokerages expect First American Financial Corp (NYSE:FAF) to report $1.14 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Two analysts have made estimates for First American Financial’s earnings, with the highest EPS estimate coming in at $1.14 and the lowest estimate coming in at $1.13. First American Financial posted earnings per share of $0.95 in the same quarter last year, which suggests a positive year-over-year growth rate of 20%. The firm is expected to report its next earnings results on Thursday, February 14th.

According to Zacks, analysts expect that First American Financial will report full-year earnings of $4.45 per share for the current financial year, with EPS estimates ranging from $4.39 to $4.50. For the next year, analysts expect that the firm will post earnings of $4.57 per share, with EPS estimates ranging from $4.46 to $4.70. Zacks Investment Research’s earnings per share calculations are an average based on a survey of analysts that follow First American Financial.

First American Financial (NYSE:FAF) last released its quarterly earnings results on Thursday, October 25th. The insurance provider reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.02). First American Financial had a net margin of 10.39% and a return on equity of 13.68%. The business had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.55 billion.

A number of research firms have recently weighed in on FAF. Zacks Investment Research downgraded shares of First American Financial from a “hold” rating to a “strong sell” rating in a research report on Tuesday. ValuEngine downgraded shares of First American Financial from a “hold” rating to a “sell” rating in a research report on Wednesday, September 19th. Piper Jaffray Companies lifted their price target on shares of First American Financial from $63.00 to $65.00 and gave the company a “neutral” rating in a research report on Friday, July 27th. Finally, Keefe, Bruyette & Woods upgraded shares of First American Financial from a “market perform” rating to an “outperform” rating and set a $39.00 price target for the company in a research report on Monday, July 16th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and two have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $57.50.

In other First American Financial news, insider Matthew F. Wajner sold 4,982 shares of the business’s stock in a transaction on Tuesday, August 21st. The shares were sold at an average price of $57.29, for a total transaction of $285,418.78. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Kenneth D. Degiorgio sold 13,871 shares of the business’s stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $57.25, for a total transaction of $794,114.75. The disclosure for this sale can be found here. Company insiders own 3.00% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of FAF. Principal Financial Group Inc. grew its stake in shares of First American Financial by 70.7% during the first quarter. Principal Financial Group Inc. now owns 966,832 shares of the insurance provider’s stock worth $56,733,000 after buying an additional 400,378 shares during the last quarter. Allianz Asset Management GmbH grew its stake in shares of First American Financial by 28.2% in the first quarter. Allianz Asset Management GmbH now owns 1,586,631 shares of the insurance provider’s stock worth $93,104,000 after purchasing an additional 349,008 shares during the last quarter. Clinton Group Inc. bought a new stake in shares of First American Financial in the second quarter worth $2,122,000. State of Alaska Department of Revenue grew its stake in shares of First American Financial by 40.0% in the second quarter. State of Alaska Department of Revenue now owns 11,820 shares of the insurance provider’s stock worth $611,000 after purchasing an additional 3,380 shares during the last quarter. Finally, Denali Advisors LLC grew its stake in shares of First American Financial by 420.0% in the second quarter. Denali Advisors LLC now owns 7,800 shares of the insurance provider’s stock worth $403,000 after purchasing an additional 6,300 shares during the last quarter. 83.38% of the stock is currently owned by hedge funds and other institutional investors.

Shares of NYSE FAF traded up $0.88 during midday trading on Friday, reaching $46.35. The company’s stock had a trading volume of 19,801 shares, compared to its average volume of 1,086,699. First American Financial has a fifty-two week low of $41.96 and a fifty-two week high of $62.71. The company has a market cap of $5.02 billion, a price-to-earnings ratio of 16.83, a PEG ratio of 0.77 and a beta of 0.84.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 17th. Investors of record on Monday, December 10th will be paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 3.62%. First American Financial’s dividend payout ratio (DPR) is 61.09%.

About First American Financial

First American Financial Corp. operates as an insurance company. It provides title insurance and settlement services to the real estate and mortgage industries. The company operates its business through the following segments: Title Insurance & Services and Specialty Insurance. The Title Insurance & Services segment provides title insurance, escrow, closing services and similar or related financial services domestically and internationally in connection with residential and commercial real estate transactions.

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