First American Q2 results top forecasts, approves $300 mln share buyback
Overview
First American Q2 2025 revenue grows 14%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reaching $1.53, per LSEG data
Co announces new $300 mln share repurchase authorization
Outlook
Company expects productivity improvements from investments in data, technology, and AI
First American poised to outperform in next real estate cycle
Company sees strong commercial business growth
Result Drivers
TITLE INSURANCE GROWTH - Title Insurance and Services segment revenues increased 13% due to higher average revenue per order and more closed orders
COMMERCIAL REVENUE - Commercial revenues rose 33%, driven by increased average revenue per order
INVESTMENT INCOME - Investment income grew 17% due to higher interest income from the investment portfolio
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.84 bln | $1.76 bln (3 Analysts) |
Q2 Adjusted EPS | Beat | $1.53 | $1.36 (5 Analysts) |
Q2 EPS | $1.41 | ||
Q2 Net Income | $146.10 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for First American Financial Corp is $75.00, about 23.3% above its July 22 closing price of $57.56
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release:
