Aflac’s Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Aflac (NYSE:AFL) will unveil its latest earnings on Tuesday, July 24, 2012. Aflac, a general business holding company, provides supplemental health and life insurance through its subsidiaries in the United States and Japan.

Aflac Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.61 per share, a rise of 3.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.63. Between one and three months ago, the average estimate moved down. It has risen from $1.60 during the last month. For the year, analysts are projecting profit of $6.55 per share, a rise of 3.5% from last year.

Last quarter, the company came in at net income of $1.74 per share against a mean estimate of profit of $1.65 per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 3 cents.

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A Look Back: In the first quarter, profit rose 98.7% to $785 million ($1.68 a share) from $395 million (84 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 21.9% to $6.24 billion from $5.12 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 23.2% in revenue from the year-earlier quarter to $6.27 billion.

Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen $4.17 (10.5%), from $39.73 to $43.90. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 25, 2012, when shares rose for eight straight days, increasing 13.8% (+$5.98) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 9.4% (-$4.12) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 7.8% in the third quarter of the last fiscal year and 24.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2.2% in the second quarter of the last fiscal year, 11% in the third quarter of the last fiscal year and 12.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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