First American Earnings Preview

First American (NYSE: FAF  ) beat estimates by $0.02 last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Thursday, Feb. 23. First American Financial provides financial services through its title insurance and services segment and its specialty insurance segment.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on First American, with analysts unanimously rating it hold. Analysts' rating of First American has stayed constant from three months prior.
  • Revenue forecasts: On average, analysts predict $1.01 billion in revenue this quarter. That would represent a decline of 1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.30 per share. Estimates range from $0.23 to $0.37.

What our community says:
The majority of CAPS All-Stars consider First American a good bet, as 63.6% award it an outperform rating. The majority of the Fools are in agreement with the All-Stars, as 76.9% give it an outperform rating. First American's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has fallen in the past two quarters.

Now let's get some insight into how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. First American's net margins, which reflect what percentage of revenue becomes profit, have dropped year over year for the last three quarters. Here are First American's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Net Margin

2.2%

3.5%

(1.6%)

4.6%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add First American now.

Motley Fool newsletter services have recommended buying shares of First American Financial. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1783979, ~/Articles/ArticleHandler.aspx, 4/20/2014 2:15:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement