AFLAC Earnings: Higher-Than-Expected Net Income
S&P 500 (NYSE:SPY) component AFLAC Incorporated (NYSE:AFL) reported net income above Wall Street’s expectations 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
Results: Net income for the insurance-health rose to $1.02 billion ($2.16 per share) vs. $736 million ($1.57 per share) in the same quarter a year earlier. This marks a rise of 38.2% from the year-earlier quarter.
Revenue: Rose 14.4% to $6.85 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: AFLAC Incorporated beat the mean analyst estimate of $1.66 per share. It beat the average revenue estimate of $6.28 billion.
Quoting Management: Commenting on the company’s third quarter results, Chairman and Chief Executive Officer Daniel P. Amos stated, “We remain pleased with Aflac’s financial performance for the first nine months of 2012. Aflac Japan had another impressive quarter, continuing tremendous sales momentum, especially through the bank channel. Aflac Japan’s third quarter production came in much stronger than we expected and set an all-time record for new annualized premium sales for the fifth quarter in a row. Keep in mind, we continue to face tougher sales comparisons in the fourth quarter.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 15.2%, with the biggest boost coming in the first quarter when revenue rose 21.9% from the year earlier quarter.
The company beat estimates last quarter after meeting expectations in the second quarter with net income of $1.61 per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.58 a share to $1.52 over the last ninety days. For the fiscal year, the average estimate has moved up from $6.52 a share to $6.53 over the last thirty days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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