First American Financial Q3 revenue slightly misses estimates
FAF•First American Financial’s third-quarter revenue rose 5% year over year to $2.08 billion, slightly below the $2.10 billion estimate. Adjusted EPS rose to $1.78 from $1.70 a year earlier, and the company raised its annual dividend by 11%.
1. Quarterly results
First American Financial reported third-quarter revenue of $2.08 billion, up 5% year over year and slightly below the $2.10 billion consensus estimate. Adjusted EPS increased to $1.78 from $1.70 a year earlier; reported EPS was $1.72, and net income was $177 million.
2. Business and outlook
CEO Mark Seaton said commercial business growth helped drive earnings. Higher interest income lifted investment income, while higher average revenue per direct title order, especially for commercial transactions, offset lower order volume. The company expects a lower-for-longer residential origination market due to higher mortgage rates and plans to roll out AI-native title and settlement platforms.
3. Dividend increase
The company raised its annual dividend by 11%.
