What is DOWLING & PARTN's Estimate for FAF FY2026 Earnings?

Key Points

• DOWLING & PARTN lowered its FY2026 EPS estimate for First American Financial to $6.89, from $6.94, below the consensus estimate of $6.95. The firm projects FY2027 EPS of $6.80.
• First American Financial’s latest quarterly results missed expectations, with EPS of $1.78 versus the $1.85 consensus and revenue of $2.09 billion versus $2.10 billion expected.
• Despite the earnings miss, analysts maintain a broadly positive view: the stock has a “Moderate Buy” consensus rating, an $81.60 average price target, and pays a $2.20 annualized dividend yielding about 3.5%.

First American Financial Corporation (NYSE:FAF - Free Report) - Research analysts at DOWLING & PARTN decreased their FY2026 EPS estimates for shares of First American Financial in a research note issued on Tuesday, October 27th. DOWLING & PARTN analyst G. Dunn now anticipates that the insurance provider will earn $6.89 per share for the year, down from their previous estimate of $6.94. The consensus estimate for First American Financial's current full-year earnings is $6.95 per share. DOWLING & PARTN also issued estimates for First American Financial's FY2027 earnings at $6.80 EPS.

First American Financial (NYSE:FAF - Get Free Report) last posted its earnings results on Wednesday, October 21st. The insurance provider reported $1.78 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.07). The company had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.10 billion. First American Financial had a net margin of 9.05% and a return on equity of 13.43%. During the same quarter last year, the business posted $1.84 EPS.

Other research analysts have also issued reports about the company. Weiss Ratings restated a "buy (b)" rating on shares of First American Financial in a research report on Friday, October 16th. Benchmark began coverage on First American Financial in a report on Tuesday, July 21st. They issued a "buy" rating and a $85.00 price objective on the stock. Truist Financial decreased their target price on First American Financial from $80.00 to $78.00 and set a "buy" rating on the stock in a research note on Friday, October 23rd. Barclays lowered their target price on First American Financial from $79.00 to $75.00 and set an "overweight" rating for the company in a report on Friday, October 23rd. Finally, Keefe, Bruyette & Woods lifted their target price on First American Financial from $84.00 to $86.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, First American Financial has a consensus rating of "Moderate Buy" and a consensus price target of $81.60.

First American Financial Stock Down 1.4%

Shares of NYSE FAF opened at $63.47 on Thursday. The business's 50 day moving average is $67.91 and its two-hundred day moving average is $67.30. First American Financial has a 52-week low of $56.20 and a 52-week high of $79.87. The firm has a market cap of $6.48 billion, a price-to-earnings ratio of 8.94, a PEG ratio of 0.61 and a beta of 1.24.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, October 5th. Shareholders of record on Monday, September 28th were issued a dividend of $0.55 per share. The ex-dividend date was Monday, September 28th. This represents a $2.20 dividend on an annualized basis and a yield of 3.5%. First American Financial's dividend payout ratio is 34.37%.

Hedge Funds Weigh In On First American Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of First American Financial in the second quarter worth $643,570,000. Dimensional Fund Advisors LP raised its stake in shares of First American Financial by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider's stock valued at $279,529,000 after acquiring an additional 245,279 shares in the last quarter. Reinhart Partners LLC. raised its stake in shares of First American Financial by 1.9% in the second quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider's stock valued at $106,537,000 after acquiring an additional 28,534 shares in the last quarter. Davis Asset Management L.P. acquired a new stake in shares of First American Financial in the second quarter valued at $102,885,000. Finally, First Trust Advisors LP boosted its holdings in First American Financial by 110.2% in the first quarter. First Trust Advisors LP now owns 1,304,820 shares of the insurance provider's stock valued at $78,668,000 after purchasing an additional 684,117 shares during the period. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Company Profile

First American Financial Corporation NYSE: FAF is a provider of title insurance, settlement services and financial technology solutions for the real estate and mortgage industries. Through its First American Title operations, the company helps protect property owners, lenders and other parties against title defects and related risks during real estate transactions.

The company's services include title searches and examination, title insurance policies, escrow and closing services, and transaction coordination.

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