Overview

* First American Q3 revenue grows 41% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 was $1.70, reflecting operational improvements

* Company repurchased 597,726 shares for $34 mln, raised dividend by 2%

Outlook

* Company optimistic about long-term outlook due to early stages of real estate cycle

* Investments in AI expected to drive productivity and unlock new revenue opportunities

Result Drivers

* TITLE SEGMENT GROWTH - Increased direct title orders and agent premiums drove revenue growth in Title Insurance and Services segment

* HOME WARRANTY MARGINS - Lower claim frequency improved Home Warranty segment margins

* INVESTMENT INCOME - Higher interest income from investment portfolio increased investment income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.86

Revenue $2.0 bln (3

bln Analysts

)

Q3 EPS $1.84

Q3 Net $190 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for First American Financial Corp ( FAF ) is $76.00, about 19.6% above its October 21 closing price of $61.07

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)