Santa Ana-based First American Corp. reported a profit and sales in line with Wall Street estimates last week and said it hopes to complete a long-planned spinoff by June 1.
First American reported a profit of $38 million compared to a loss of $67 million a year earlier.
The profit, which includes restructuring and other charges, matched what analysts were looking for on average.
Without charges, First American’s profit was $63 million.
Revenue came in at $1.5 billion, up 11% and topping the $1.47 billion analysts were looking for.
First American writes insurance policies that protect home and other real estate owners from competing claims of ownership.
The company also provides real estate, consumer credit, motor vehicle and other data to businesses and employers screening potential hires.
For more than two years, First American has planned to separate its businesses by spinning off its dominate title insurance unit—a move delayed by the housing downturn.
First American now says it hopes to complete the spinoff by June 1 as it awaits regulatory approvals. The company had been targeting April as a potential spinoff date.
The new company is expected to have a market value of about $2.1 billion and annual revenue of more than $4 billion.
The remaining data services business is set to have $2.1 billion in yearly revenue and be valued at about $1.5 billion.
Both are set to be based at First American’s Santa Ana headquarters.
—Michael Lyster
