AFLAC Incorporated Earnings Cheat Sheet: Booking a Profit Again

S&P 500 (NYSE:SPY) component AFLAC Incorporated (NYSE:AFL) reported its results for the third quarter. Aflac, a general business holding company, provides supplemental health and life insurance through its subsidiaries in the United States and Japan.

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AFLAC Incorporated Earnings Cheat Sheet for the Third Quarter

Results: Net income for AFLAC Incorporated rose to $744 million ($1.59 per share) vs. $690 million ($1.46 per share) in the same quarter a year earlier. This marks a rise of 7.8% from the year earlier quarter.

Revenue: Rose 11% to $5.99 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AFL was about in line with expectations as the mean analyst estimate of $1.60 per share. It beat the average revenue estimate of $5.86 billion.

Quoting Management: Chairman and Chief Executive Officer Daniel P. Amos stated: “We are pleased with our overall results in the third quarter of 2011. Aflac Japan sales greatly exceeded our expectations, largely because of our ability to develop relevant products such as WAYS that appeal to banks and Japanese consumers alike. We are proud of Aflac Japan’s remarkable results, especially following two years of exceptional sales growth and the challenges in 2011 resulting from the most devastating natural disaster in Japan’s history. Our outstanding sales results in 2011 will create difficult comparisons in 2012. We were also pleased that Aflac U.S. continued to generate strong sales results, despite the continued weakness in the U.S. economy.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 2.2% to $5.09 billion in the second quarter. The figure rose 1% in the first quarter from the year earlier and climbed 15.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 11 cents.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 51.8% while the figure dropped in the first quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is $1.46 per share, dropping from $1.53 a month ago. Over the past three months, the average estimate for the fiscal year has climbed from $6.24 per to share to $6.34.

Competitors to Watch: Unum Group (NYSE:UNM), Principal Financial Group, Inc. (NYSE:PFG), Triple-S Management Corp. (NYSE:GTS), American Independence Corp. (NASDAQ:AMIC), CIGNA Corporation (NYSE:CI), WellPoint, Inc. (NYSE:WLP), Universal American Corp. (NYSE:UAM), Humana Inc. (NYSE:HUM), HealthMarkets, Inc. (NYSE:UCI), and Citizens Financial Corp. (CFIN).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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