NYSE$FAF

First American Financial Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

First American Financial's second quarter 2022 financial results were announced.

First American Financial Corporation reported a decrease in total revenue by 9% to $2.1 billion compared to the second quarter of 2021. Net income decreased to $109 million, or $1.01 per diluted share, from $302 million, or $2.72 per diluted share, in the same quarter of the previous year. Excluding net investment losses, total revenue increased by 1%.

  • Earnings per diluted share were $1.01, or $1.97 excluding 96 cents of net investment losses.
  • Total revenue was $2.1 billion, down 9 percent compared with last year; excluding net investment losses, total revenue was up 1 percent compared with last year.
  • Title Insurance and Services segment pretax margin was 11.7 percent, or 13.9 percent excluding net investment losses.
  • Commercial revenues were $289 million, up 30 percent compared with last year.

Headline financials

Total Revenue

$2.06B

Previous: $2.27B-9.0%
EPS (adj)

$1.97

Previous: $2.13-7.5%
Title Open Orders

257.2K

No prior period
Title Closed Orders

205.0K

No prior period
Commercial Revenues

$289M

Previous: $223M+29.4%
Average Revenue per Order

$13.2K

Previous: $2.65K+397.9%
Free Cash Flow

$109M

Previous: $302M-63.9%
Net Income

$109M

Previous: $302M-63.9%
Operating Income

$916M

Previous: $1.18B-22.4%
Gross Profit

$2.06B

Previous: $2.27B-9.0%
Cash & Equivalents

$1.75B

Previous: $2.22B-21.5%
Total Assets

$16.3B

Previous: $15.4B+5.4%
Stock-Based Comp

$8.7M

Previous: $8.37M+4.0%

Revenue & EPS history

First American · Revenue · Quarterly

$2.06B

Q2 2022-9%vs Q2 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

First American · $2.16B total across 2 segments · Q2 2022

  • Title Insurance and Services
    $2.05B-2.6%
  • Home Warranty
    $102M-5.2%

Forward guidance

First American is maintaining its focus on expense management and is committed to investing in strategic initiatives that support the company’s growth and operational efficiency.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.2%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+1.7%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+10.6%

Q1 2020

Best reaction

-7.3%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.5%+6.1%+2.5%
Q4 2025+2.8%+5.7%+2.1%
Q3 2025+3.2%+2.3%+5.2%
Q2 2025-2.1%-1.8%+2.5%
Q1 2025+4.9%+2.8%-6.8%
Q3 2024-0.4%-0.3%+5.4%
Q2 2024-0.2%+2.9%+10.2%
Q1 2024-6.7%-6.9%-5.6%
Q4 2023-0.6%+1.5%-6.0%
Q3 2023+0.3%+2.8%+16.1%
Q2 2023+4.9%+5.1%+0.1%
Q1 2023+4.2%+3.4%-0.1%
Q4 2022-2.2%-0.6%-13.9%
Q3 2022+8.5%+8.4%+17.3%
Q2 2022+2.0%-1.5%-0.1%
Q1 2022-3.0%+0.3%+0.8%
Q4 2021-7.3%-7.4%-12.2%
Q3 2021-0.5%+0.2%+4.7%
Q2 2021+3.1%+2.8%+8.0%
Q1 2021+3.8%+6.3%+6.1%
Q4 2020+3.0%+2.6%+5.6%
Q3 2020-6.1%-9.7%-1.8%
Q2 2020-2.5%-6.0%-8.7%
Q1 2020+10.6%+17.1%+21.8%
Q4 2019+5.0%+5.4%-13.9%
Q3 2019+2.9%+1.4%+3.6%
Q2 2019+3.5%+4.2%+3.2%
Q1 2019+3.0%+1.5%-1.7%
Q4 2018-1.6%-2.7%-3.7%
Q3 2018+1.2%+3.7%+7.8%
Q2 2018+3.2%+2.8%+3.9%
Q1 2018-5.7%-5.0%-1.0%
Q4 2017-4.7%+0.1%+3.7%
Q3 2017+4.5%+6.6%+7.8%
Q2 2017+5.6%+4.7%+4.6%
Q1 2017+6.5%+4.2%+5.7%
Q4 2016-0.3%+0.1%-3.4%
Q3 2016-3.3%-2.0%-4.6%
Q2 2016+2.1%+0.6%+1.9%
Q1 2016-0.9%
Q4 2015+9.8%
Q3 2015-0.2%
Q2 2015+4.5%
Q1 2015+3.0%
Q4 2014+5.6%
Q3 2014+4.4%
Q2 2014-2.2%
Q1 2014+3.4%
Q4 2013+2.4%
Q3 2013+0.6%
Q2 2013+2.0%
Q1 2013+1.3%
Q4 2012-0.8%
Q3 2012-1.7%
Q2 2012+4.3%
Q1 2012+1.0%
Q4 2008+3.3%
Q4 2011+3.3%
Q3 2011+4.3%
Q2 2011-3.7%
Q1 2010-1.6%
Q1 2011-0.9%
Q4 2010-1.0%
Q3 2010+2.8%
Q3 2009+2.8%
Q2 2010-2.8%
Q2 2009-2.8%
Q4 2009-2.8%

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