First American Financial Corp Stock Downgraded (FAF)
- FIRST AMERICAN FINANCIAL CP's earnings per share declined by 35.5% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 27.8% in earnings ($0.78 versus $1.08).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Insurance industry. The net income has significantly decreased by 36.5% when compared to the same quarter one year ago, falling from $33.13 million to $21.04 million.
- The gross profit margin for FIRST AMERICAN FINANCIAL CP is currently extremely low, coming in at 7.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.20% trails that of the industry average.
- The share price of FIRST AMERICAN FINANCIAL CP has not done very well: it is down 18.52% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.0%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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