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Sep 30, 2020
First American Q3 2020 Earnings Report
First American Financial reported strong third quarter results driven by growth in title insurance and services.
Key Takeaways
First American Financial Corporation reported a 15% increase in total revenue to $1.9 billion for the third quarter of 2020. Net income was $182.3 million, or $1.62 per diluted share. The Title Insurance and Services segment achieved a record pretax margin of 19.0 percent.
Total revenue of $1.9 billion, up 15 percent compared with last year
Closed title orders up 30 percent, driven by an 85 percent increase in refinance orders
Title Insurance and Services segment record pretax margin of 19.0 percent
Commercial revenues of $142.6 million, down 29 percent compared with last year
Revenue by Segment
Forward Guidance
Given low mortgage rates and robust demand for housing, First American expects refinance and purchase activity to remain at elevated levels for the remainder of the year. The commercial market continued to improve during the quarter and they are optimistic, given a better pipeline, as they head into the seasonally strong fourth quarter.
Positive Outlook
- Low mortgage rates
- Robust demand for housing
- Strong order trends
- Continued focus on cost efficiency
- Better pipeline in commercial market
Challenges Ahead
- Interest rate fluctuations
- Changes in the performance of the real estate markets
- Volatility in the capital markets
- Unfavorable economic conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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