AFLAC Earnings: Here’s Why Investors are Selling Shares Now

AFLAC Inc. (NYSE:AFL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.30%.

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AFLAC Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.87% to $1.69 in the quarter versus EPS of $1.74 in the year-earlier quarter.

Revenue: Decreased 0.51% to $6.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AFLAC Inc. reported adjusted EPS income of $1.69 per share. By that measure, the company beat the mean analyst estimate of $1.62. It beat the average revenue estimate of $6.14 billion.

Quoting Management: 1.30
Commenting on the company’s first quarter results, Chairman and Chief Executive Officer Daniel P. Amos stated: “Although the underlying strong results were masked by a significantly weaker yen, we are pleased with our overall results in the first quarter of 2013. Aflac Japan produced solid financial results that exceeded our expectations for the quarter. Aflac Japan’s overall sales were up due to the advanced purchases of products prior to a scheduled premium increase. Third sector sales on the other hand, were down for the first quarter as expected. However, we believe consumer response to our third sector products will be strong in the second half of 2013. As such, we continue to expect that Aflac Japan’s sales of third sector products will be flat to up 5% for the year.”

Key Stats (on next page)…

Revenue decreased 2.62% from $6.38 billion in the previous quarter. EPS increased 14.19% from $1.48 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.66 to a profit $1.57. For the current year, the average estimate has moved down from a profit of $6.68 to a profit of $6.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)