Compared to Estimates, First American Financial (FAF) Q2 Earnings: A Look at Key Metrics

Core Insights - First American Financial reported a revenue of $1.61 billion for the quarter ended June 2024, reflecting a decrease of 2.1% compared to the same period last year [4] - The earnings per share (EPS) for the quarter was $1.27, down from $1.35 in the year-ago quarter [4] - The company experienced a revenue surprise of -1.20% against the Zacks Consensus Estimate of $1.63 billion, while the EPS surprise was +12.39% against a consensus estimate of $1.13 [1] Revenue Breakdown - Net investment income was reported at $129.90 million, which is -13.6% year-over-year and below the average estimate of $137.03 million [2] - Agent premiums amounted to $616.30 million, slightly above the average estimate of $610.07 million, but still down -1.3% year-over-year [2] - Direct premiums and escrow fees reached $632.70 million, exceeding the average estimate of $613.88 million, with a year-over-year increase of +2.8% [2] - Information and other revenues were reported at $246.60 million, below the average estimate of $251.01 million, reflecting a year-over-year decline of -1.5% [2] Stock Performance - Over the past month, shares of First American Financial have returned +8.6%, outperforming the Zacks S&P 500 composite, which saw a +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]