NYSE$FAF

First American Financial Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

First American Financial's Q4 2022 financial results were reported, showing a decrease in revenue and earnings compared to the previous year, but expense management and investment income growth helped mitigate the impact of the challenging real estate market.

First American Financial Corporation reported a 29% decrease in total revenue to $1.7 billion for Q4 2022, with earnings per diluted share at $0.52. The company's results were impacted by a cyclical decline in the real estate market, but were partially offset by expense management and growth in investment income. The company returned $658 million to shareholders through share repurchases and dividends in 2022.

  • Earnings per diluted share were $0.52, or $1.35 excluding $0.83 of net investment losses.
  • Total revenue was $1.7 billion, a 29% decrease compared to the previous year.
  • Commercial title revenues decreased by 34% to $251 million.
  • Title Insurance and Services segment investment income increased by 169% to $132 million.

Headline financials

Total Revenue

$1.69B

Previous: $2.37B-29.0%
EPS (adj)

$1.35

Previous: $2.28-40.8%
Average Revenue per Order

$4.02K

Previous: $3.34K+20.4%
Title Insurance Pretax Margin

7.1%

Previous: 16.3%-56.4%
Home Warranty Pretax Margin

13.9%

No prior period
Debt-to-Capital Ratio

30.0%

No prior period
Cash Flow from Operations

$246M

No prior period
Net Income

$54M

Previous: $260M-79.2%
Operating Income

$58M

Previous: $333M-82.6%
Gross Profit

-$655M

Previous: $1.05B-162.4%
Cash & Equivalents

$1.22B

Previous: $1.23B-0.3%
Total Assets

$15B

Previous: $16.5B-9.1%
Stock-Based Comp

$7M

Previous: $7.37M-5.0%

Revenue & EPS history

First American · Revenue · Quarterly

$1.69B

Q4 2022-29%vs Q4 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

First American · $1.72B total across 2 segments · Q4 2022

  • Title Insurance and Services
    $1.61B-28.8%
  • Home Warranty
    $108M+3.8%

Forward guidance

First American anticipates early signs of stabilization in the purchase market and believes the company is well-positioned for long-term growth, planning to continue investing in strategic initiatives, pursuing acquisitions, and returning capital to shareholders.

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 Q4 2022

Historical avgQ4 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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