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Sep 30, 2024
First American Q4 2024 Earnings Report
First American Financial Corporation reported its financial results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
First American Financial Corporation delivered strong results in the fourth quarter of 2024, with total revenue increasing by 18% and adjusted total revenue up 20% compared to the prior year. The company's earnings per diluted share were $0.69, or $1.35 on an adjusted basis, despite significant net investment losses.
Total revenue increased by 18% to $1.7 billion in the fourth quarter of 2024.
Adjusted earnings per diluted share were $1.35, reflecting strong operational performance.
Commercial revenues saw a significant increase of 47% compared to the prior year.
The company repurchased 124,000 shares for $8 million at an average price of $65.80 in the fourth quarter.
Revenue by Segment
Forward Guidance
The company anticipates mortgage rates to remain elevated in 2025 but expects modest improvement in residential purchase and refinance businesses. Commercial business is expected to have a good year with continued revenue growth weighted to the first half.
Positive Outlook
- Modest improvement expected in residential purchase business.
- Modest improvement expected in refinance business.
- Commercial business expected to have a good year.
- Continued revenue growth weighted to the first half of 2025 for commercial business.
- Another year of earnings improvement anticipated.
Challenges Ahead
- Mortgage rates are expected to remain elevated.
- The company acknowledges the widespread damage from recent wildfires in the Los Angeles area, which directly impacted employees and customers.
- The company did not provide specific negative financial guidance for 2025 beyond the elevated mortgage rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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