• Mon. Nov 30th, 2020

Pharma Oracle

Evolving Today for better Tomorrow

Solid average income phase stability: First American Financial Corporation (NYSE: FAF)

On 16 March 2020, First American Financial Corporation (NYSE: FAF) spotted trading -33.14% off 52-week high price. On the other end, the stock has been noted -7.56% away from the low price over the last 52-weeks. The stock changed -16.87% to recent value of $44.65. The stock transacted 2214921 shares during most recent day however it has an average volume of 887.25K shares. The company has 119.72M of outstanding shares and 109.16M shares were floated in the market.

First American Financial Corporation (FAF) recently reported financial results for the fourth quarter and year ended Dec. 31, 2019.

Full Year 2019 Highlights

Total revenue of $6.2B, up 8 percent contrast with last year

Record Title Insurance and Services section pretax margin of 16.1 percent

15.2 percent not including net realized investment gains

Record commercial revenues of $767.0M, up 2 percent contrast with last year

Title Insurance and Services section investment income of $282.9M, up 27 percent vs. 2018

Specialty Insurance section pretax margin of 13.2 percent, highest since 2014

11.3 percent not including net realized investment gains

Cash flow from operations of $913.1M, up 15 percent contrast with last year

Return on equity of 17.3 percent

In January 2020, raised ordinary stock dividend by 5 percent to an yearly rate of $1.76 per share

Named to the Fortune 100 Best Companies to Work For® list for the fourth consecutive year

Total revenue for the fourth quarter of 2019 was $1.7B, a raise of 22 percent relative to the fourth quarter of 2018. Net income in the current quarter was $224.0M, or $1.97 per diluted share, contrast with net income of $91.6M, or 81 cents per diluted share, in the fourth quarter of 2018. Net realized investment gains in the current quarter were $23.8M, or 16 cents per diluted share, contrast with net realized investment losses of $67.5M, or 47 cents per diluted share, in the fourth quarter of last year. These nets realized investment gains and losses were primarily Because of the change in the fair value of equity securities.

Total revenue for the full year of 2019 was $6.2B, up 8 percent contrast with the previous year. Net income was $707.4M, or $6.22 per diluted share, contrast with net income of $474.5M, or $4.19 per diluted share, in 2018. Net realized investment gains in 2019 were $66.4M, or $0.46 per diluted share, contrast with net realized investment losses of $56.5M, or $0.39 per diluted share, in 2018. These nets realized investment gains and losses were primarily Because of the change in the fair value of equity securities.

“Our strong fourth-quarter results closed out another year of record financial performance,” stated Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “Favorable market conditions combined with our continued focus on operational efficiency enabled our title section to deliver a record yearly pretax margin of 16.1 percent. Our specialty insurance section achieved a pretax margin of 13.2 percent, its highest since 2014.

“The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business. Moreover, it demonstrates our dedication to improving the home-buying experience for consumers and driving the digital transformation of the real estate settlement process. We’re excited to soon welcome to First American the people of Docutech, a highly respected leader in the document technology solutions industry. Together, we will accelerate the evolution of real estate closings.

“Looking forward to 2020, we are optimistic about market conditions and expect to continue to deliver strong financial results. Given our continued confidence in the prospects for our business and our commitment to maximize long-term shareholder value, we raised the dividend by 5 percent in January.”

Its earnings per share (EPS) expected to touch remained 48.60% for this year while earning per share for the next 5-years is expected to reach at 2.70%. FAF has an operating margin of 15.40% while its profit margin remained 11.40% for the last 12 months. The price moved ahead of -27.63% from the mean of 20 days, -26.96% from mean of 50 days SMA and performed -24.35% from mean of 200 days price. Company’s performance for the week was -24.87%, -31.65% for month and YTD performance remained -23.44%.

 

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