Overview

• US title insurer's Q1 revenue beats analyst expectations

• Company repurchased 556,336 shares for $33 mln during the quarter

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• COMMERCIAL REVENUE GROWTH - Record Q1 commercial revenue, up 48% yr/yr, was a key driver of results

• INVESTMENT INCOME - Title segment investment income rose 12% yr/yr, helped by higher interest income and capturing more deposit sources

• HIGHER PREMIUMS AND VOLUMES - Direct premiums and escrow fees rose 21% yr/yr, driven by a 13% increase in average revenue per order closed and a 9% increase in direct title orders closed

Company press release: ID:nBw2wv79Pa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$1.84 bln	$1.79 bln (5 Analysts)
Q1 EPS		$1.21
Q1 Net Income		$125.10 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 is $81.50, about 21.8% above its April 21 closing price of $66.90

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

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