NYSE$FAF

First American Financial Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported third quarter earnings with $4.00 per diluted share, or $2.15 per share excluding net realized investment gains.

First American Financial Corporation reported a total revenue of $2.6 billion, up 34 percent compared with last year. Net income in the third quarter was $445.3 million, or $4.00 per diluted share, compared with net income of $182.3 million, or $1.62 per diluted share, in the third quarter of 2020.

  • Total revenue of $2.6 billion, up 34 percent compared with last year
  • Commercial title revenues up 84 percent to $262.4 million
  • Title Insurance and Services segment pretax margin of 16.4 percent
  • Cashflow from operations of $399.0 million, up 27 percent compared with last year

Headline financials

Total Revenue

$2.56B

Previous: $1.91B+33.6%
EPS (adj)

$2.15

Previous: $1.31+64.1%
Title Open Orders

318.8K

Previous: 410.6K-22.4%
Title Closed Orders

252.7K

Previous: 291.5K-13.3%
Average Revenue per Order

$13K

Previous: $2.19K+492.8%
Title Insurance Pretax Margin

16.4%

No prior period
Free Cash Flow

$445M

Previous: $182M+144.3%
Net Income

$445M

Previous: $182M+144.3%
Operating Income

$1.4B

Previous: $904M+54.4%
Gross Profit

$2.56B

Previous: $1.91B+33.6%
Cash & Equivalents

$1.95B

Previous: $1.51B+29.2%
Total Assets

$16.7B

Previous: $12.6B+32.0%
Stock-Based Comp

$7.27M

Previous: $8.4M-13.6%

Revenue & EPS history

First American · Revenue · Quarterly

$2.56B

Q3 2021+33.6%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

First American · $2.25B total across 2 segments · Q3 2021

  • Title Insurance and Services
    $2.15B+21.2%
  • Home Warranty
    $108M-20.8%

Forward guidance

Looking to the fourth quarter and into 2022, we maintain a positive outlook based on the strength of the commercial and housing markets. We also remain highly focused on innovation and enhancing our leadership position in the digital transformation of the title business.

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 Q3 2021

Historical avgQ3 2021

+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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