Why First American Financial (FAF) is Poised to Beat Earnings Estimates Again

Core Insights - First American Financial (FAF) is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 14.50% in the last two quarters [1] Earnings Performance - For the most recent quarter, First American Financial reported earnings of $1.7 per share, exceeding the expected $1.42 per share by 19.72% [2] - In the previous quarter, the company reported $1.53 per share against an estimate of $1.4 per share, resulting in a surprise of 9.29% [2] Earnings Estimates and Predictions - Recent estimates for First American Financial have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [5][8] - The current Earnings ESP for the company is +1.25%, suggesting analysts are optimistic about its near-term earnings potential [8] Zacks Rank and Predictive Power - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of a positive earnings surprise, with historical data indicating that nearly 70% of stocks with this combination beat consensus estimates [6][8] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions which may be more accurate [7]