First American Financial (FAF) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - First American Financial (FAF) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on October 22, with a consensus estimate of $1.42 per share, reflecting a +6% year-over-year change. Revenues are projected to be $1.86 billion, up 32.1% from the previous year [3][2]. - The consensus EPS estimate has been revised 1.16% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for First American Financial is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.32%. However, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. - Historical performance shows that First American Financial has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +9.29% in the last reported quarter [13][14]. Industry Context - In the broader context of the Zacks Insurance - Property and Casualty industry, Selective Insurance is expected to post earnings of $1.84 per share for the same quarter, indicating a +31.4% year-over-year change, with revenues projected at $1.35 billion, up 8.7% [18][19].