First American Financial Corp's (FAF) stock plunged 5.87% in pre-market trading on Thursday, following the company's mixed fourth-quarter earnings report. While revenue and earnings per share (EPS) beat analysts' estimates, the results fell short of market expectations, leading to a sell-off in the stock.
For the quarter ended December 2024, First American reported revenue of $1.69 billion, representing a year-over-year increase of 17.9%. The company's EPS of $1.35 surpassed the Zacks Consensus Estimate of $1.07. However, investors seemed disappointed with the company's performance, as the stock faced a significant pre-market decline.
Despite the beat on revenue and EPS, analysts at KBW maintained a "Hold" rating on the stock, citing potential challenges in the company's operating environment. Investors may have reacted negatively to the mixed results and cautious analyst outlook, leading to the pre-market sell-off.