Santa Ana-based First American Corp. reported quarterly results that topped Wall Street expectations but saw profits and revenue fall at its information services business that’s set to be the basis of the company after an upcoming spinoff.
First American, which plans to spin off its dominant title insurance business by June 1, reported a profit of $29.5 million, down 18% from a year earlier but beating Wall Street’s forecast of $24 million in profits.
The company’s revenue came in at $1.4 billion, down 1% from a year earlier but better than the $1.33 billion expected by analysts.
First American’s results were driven by a pickup in mortgage refinancing and cost cutting at its title insurance business, which writes policies protecting real estate owners from competing claims of ownership.
The company plans to spin off the title insurer by June 1. The business is set to be based in Santa Ana and take the First American Financial Corp. name. It’ll retain the company’s current “FAF” ticker.
First American’s information services unit, a provider of real estate and other data to businesses, is set to stay with the parent company, which is set to be renamed CoreLogic Inc.
It’ll be based in Santa Ana and trade under the symbol “CLGX.”
Weak results from CoreLogic overshadowed First American’s better than expected first-quarter results.
CoreLogic’s pretax income was down 33% to $62 million in the quarter. Revenue was off 7% to $471 million.
A loss of more profitable business and higher product development expenses drove the lower results, according to the company.
The quarter started slow but improved later, said head of the information services unit Anand K. Nallathambi, who’s set to be CoreLogic’s chief executive after the title insurance spinoff.
Shares of First American closed down about 4% Thursday on a market value of $3.6 billion.
