Santa Ana-based data services provider First American Corp. on Thursday posted better than expected revenue and improved earnings from a year ago, although the company’s core title business again saw a decline in profitability.
First American, the country’s second-largest title insurer, reported net income of $83.8 million in the first quarter, a 24% increase from a year ago. Revenue rose to $2.1 billion, up 6% from $2 billion a year ago.
Analysts were expecting quarterly revenue of about $2.03 billion.
For the company’s title insurance division, operating revenue declined 2% to $1.4 billion, versus $1.43 billion a year ago. The decline was due in part to the slow housing market and the declining average revenue per title order closed during the quarter, the company said.
First American expects to see a continued slowdown in housing activity in the remainder of the year, with an increase in defaults and foreclosures. As a result, the company’s title, tax monitoring and flood certification businesses will focus on expense management in the short-term, officials said.
Shares of the company closed down about 3%, to $49.82.
