Title insurance provider First American Financial (NYSE: FAF) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
First American Financial beat analysts’ revenue expectations last quarter, reporting revenues of $2.05 billion, up 21.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is First American Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting First American Financial’s revenue to grow 13.5% year on year, improving from the 11.1% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at First American Financial’s peers in the insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Progressive delivered year-on-year revenue growth of 8.7%, meeting analysts’ expectations, and Travelers reported flat revenue, falling short of estimates by 3.6%. Progressive traded up 3.5% following the results while Travelers’s stock price was unchanged.
Read our full analysis of Progressive’s results here and Travelers’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 6.9% on average over the last month. First American Financial is up 14.3% during the same time and is heading into earnings with an average analyst price target of $82 (compared to the current share price of $66.36).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
