Fidelity National Financial’s first quarter drew a negative market reaction, as both revenue and non-GAAP profit fell short of Wall Street’s expectations. Management attributed the underperformance to persistent headwinds in housing transaction volumes and the impact of elevated mortgage rate volatility. CEO Mike Nolan noted, “For the month of April, we have seen purchase open orders down 3% due to the impact of uncertainty and mortgage rate volatility.” The company nonetheless highlighted operational efficiencies and technology investments that partially offset volume pressure.
Is now the time to buy FNF? Find out in our full research report (it’s free).
Fidelity National Financial (FNF) Q1 CY2025 Highlights:
- Revenue: $2.73 billion vs analyst estimates of $3.32 billion (17.3% year-on-year decline, 17.9% miss)
- Adjusted EPS: $0.78 vs analyst expectations of $1.11 (29.9% miss)
- Market Capitalization: $15.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Fidelity National Financial’s Q1 Earnings Call
- John Campbell (Stephens Inc.) asked about the week-to-week patterns in April purchase orders amid mortgage rate volatility. CEO Mike Nolan said the trends were steady throughout the month, with little variation.
- Bose George (KBW) questioned the cadence of share buybacks for the rest of the year. CFO Anthony Park replied that buybacks would be regular but not guided, likely stronger than the first quarter due to a delayed start.
- Bose George (KBW) also asked about margin pressures in the F&G segment. F&G CEO Chris Blunt indicated the spread pressures were temporary and likely to improve as cash is deployed at higher rates.
- Mark DeVries (Deutsche Bank) asked about the rationale for the F&G capital raise investment. Park explained it aimed to support F&G’s asset growth and maintain an ownership stake above 80% for strategic flexibility.
- Terry Ma (Barclays) inquired about sustainability of title margin expansion and commercial pipeline strength. Nolan responded that commercial momentum, especially in national orders, could offer continued upside, while refinancing activity depends on interest rate trends.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will be tracking (1) whether commercial title momentum persists and supports margin expansion, (2) evidence of a rebound in purchase and refinance order volumes as mortgage rates evolve, and (3) the tangible impact of technology and AI investments on operational efficiency. Any meaningful M&A activity or notable shifts in regulatory policy will also be closely monitored for their effect on the company’s performance.
Fidelity National Financial currently trades at $56.53, down from $64.37 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
