NYSE$FAF

First American Financial Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

First American reported results with EPS of $1.33 and total revenue of $1.6 billion for Q2 2023.

First American Financial Corporation announced financial results for the second quarter ended June 30, 2023, with a total revenue of $1.6 billion, a 20% decrease compared to the second quarter of 2022. Net income was $139 million, or $1.33 per diluted share, compared to $109 million, or $1.01 per diluted share, in the second quarter of 2022.

  • Earnings per diluted share of $1.33, or $1.35 per share on an adjusted basis
  • Total revenue of $1.6 billion, down 20 percent compared with last year
  • Title Insurance and Services segment total revenues of $1.5 billion, down 25 percent
  • Title Insurance and Services segment investment income of $142 million, up 105 percent compared with last year

Headline financials

Total Revenue

$1.65B

Previous: $2.06B-20.1%
EPS (adj)

$1.35

Previous: $1.97-31.5%
Title Open Orders

174.6K

Previous: 257.2K-32.1%
Title Closed Orders

128.3K

Previous: 205.0K-37.4%
Commercial Revenues

$178M

Previous: $289M-38.4%
Title Insurance Pretax Margin

12.1%

No prior period
Home Warranty Pretax Margin

13.4%

No prior period
Cash Flow from Operations

$269M

No prior period
Free Cash Flow

$139M

Previous: $109M+27.1%
Net Income

$139M

Previous: $109M+27.1%
Operating Income

$821M

Previous: $916M-10.4%
Gross Profit

$1.65B

Previous: $2.06B-20.1%
Cash & Equivalents

$2.25B

Previous: $1.75B+28.7%
Total Assets

$15.7B

Previous: $16.3B-3.3%
Stock-Based Comp

$9M

Previous: $8.7M+3.4%

Revenue & EPS history

First American · Revenue · Quarterly

$1.65B

Q2 2023-20.1%vs Q2 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

First American · $1.64B total across 2 segments · Q2 2023

  • Title Insurance and Services
    $1.53B-25.4%
  • Home Warranty
    $107M+4.4%

Forward guidance

First American anticipates improvements in transaction activity and revenue in the commercial market during the second half of the year, consistent with normal seasonal patterns.

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 2023

Historical avgQ2 2023

+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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