First American Financial (FAF) Beats Q3 Earnings and Revenue Estimates

Core Insights - First American Financial (FAF) reported quarterly earnings of $1.7 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and up from $1.34 per share a year ago, representing an earnings surprise of +19.72% [1] - The company achieved revenues of $1.98 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.79%, compared to $1.41 billion in the same quarter last year [2] - The stock has underperformed the market, losing about 2.2% since the beginning of the year, while the S&P 500 gained 14.5% [3] Earnings Performance - Over the last four quarters, First American Financial has consistently surpassed consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $1.82 billion, and for the current fiscal year, it is $5.11 on revenues of $7.1 billion [7] Market Outlook - The company's earnings outlook is crucial for assessing future stock performance, with recent estimate revisions showing an unfavorable trend prior to the earnings release [4][6] - The Zacks Rank for First American Financial is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which First American Financial belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]