Zacks Research Has Optimistic Outlook of FAF FY2025 Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research lifted their FY2025 EPS estimates for First American Financial in a note issued to investors on Tuesday, November 25th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $5.46 for the year, up from their previous forecast of $5.37. The consensus estimate for First American Financial’s current full-year earnings is $5.35 per share. Zacks Research also issued estimates for First American Financial’s Q4 2025 earnings at $1.39 EPS, Q2 2026 earnings at $1.84 EPS, Q3 2026 earnings at $1.75 EPS, Q4 2026 earnings at $1.57 EPS, FY2026 earnings at $6.19 EPS, Q3 2027 earnings at $1.77 EPS and FY2027 earnings at $5.89 EPS.

First American Financial (NYSE:FAF) last released its earnings results on Thursday, October 23rd. The insurance provider reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $1.42 by $0.28. The business had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $1.87 billion. First American Financial had a net margin of 6.80% and a return on equity of 11.01%. The company’s quarterly revenue was up 40.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.34 earnings per share.

Several other research firms also recently weighed in on FAF. Wall Street Zen upgraded First American Financial from a “hold” rating to a “buy” rating in a research report on Sunday, October 26th. Barclays increased their price objective on First American Financial from $70.00 to $71.00 and gave the company a “cautious” rating in a research note on Monday, October 6th. Weiss Ratings raised shares of First American Financial from a “hold (c+)” rating to a “buy (b)” rating in a research note on Saturday, October 25th. Stephens initiated coverage on shares of First American Financial in a report on Friday, November 14th. They set an “equal weight” rating for the company. Finally, Truist Financial raised their price target on shares of First American Financial from $73.00 to $76.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $76.00.

First American Financial Trading Up 0.4%

FAF stock opened at $66.07 on Thursday. First American Financial has a 12-month low of $53.09 and a 12-month high of $70.92. The business’s 50-day moving average is $62.87 and its 200 day moving average is $61.62. The stock has a market cap of $6.73 billion, a price-to-earnings ratio of 14.21 and a beta of 1.24.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. SJS Investment Consulting Inc. increased its position in First American Financial by 2,887.5% during the third quarter. SJS Investment Consulting Inc. now owns 478 shares of the insurance provider’s stock worth $31,000 after purchasing an additional 462 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new position in First American Financial in the 2nd quarter valued at about $35,000. Atlantic Union Bankshares Corp purchased a new stake in shares of First American Financial in the 2nd quarter valued at approximately $36,000. First Horizon Corp acquired a new stake in shares of First American Financial during the 3rd quarter worth approximately $37,000. Finally, Tripletail Wealth Management LLC acquired a new stake in shares of First American Financial during the 3rd quarter worth approximately $41,000. Institutional investors and hedge funds own 89.05% of the company’s stock.

First American Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 8th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Monday, December 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.3%. First American Financial’s dividend payout ratio (DPR) is 47.31%.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.