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Mar 31, 2020

First American Q1 2020 Earnings Report

First American's Q1 2020 earnings were reported, revealing a revenue increase of 8% compared to the previous year, driven by a surge in closed title orders, though net income was impacted by investment losses.

Key Takeaways

First American Financial Corporation reported a revenue increase of 8% to $1.4 billion for Q1 2020. Net income decreased to $63.2 million, or 55 cents per diluted share, compared to $109.6 million, or 97 cents per diluted share, in Q1 2019, impacted by net realized investment losses.

Total revenue increased by 8% year-over-year to $1.4 billion.

Net income was $63.2 million, or 55 cents per diluted share.

Closed title orders rose by 34%, fueled by a 144% increase in refinance orders.

The company repurchased 1.7 million shares for $65.8 million, averaging $38.64 per share.

Total Revenue
$1.41B
Previous year: $1.3B
+8.4%
EPS
$1.06
Previous year: $0.74
+43.2%
Title open orders
354.4K
Previous year: 227.8K
+55.6%
Commercial Revenues
$159M
Previous year: $148M
+7.5%
Average Revenue per Order
$2.32K
Gross Profit
$1.16B
Previous year: $1.11B
+4.4%
Cash and Equivalents
$1.05B
Previous year: $1.34B
-21.5%
Total Assets
$11.7B
Previous year: $11.2B
+4.6%

First American

First American

First American Revenue by Segment

Forward Guidance

The company believes the adoption of digital title and closing processes will accelerate as a result of the pandemic.