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AFLAC Beats on Both Top and Bottom Lines

AFLAC (NYSE: AFL  ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), AFLAC beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.

Gross margins contracted, operating margins increased, net margins grew.

Revenue details
AFLAC chalked up revenue of $6.04 billion. The nine analysts polled by S&P Capital IQ predicted sales of $5.86 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.62. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.51 per share. Non-GAAP EPS of $1.62 for Q2 were 0.6% higher than the prior-year quarter's $1.61 per share. GAAP EPS of $1.90 for Q2 were 84% higher than the prior-year quarter's $1.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.5%, 260 basis points worse than the prior-year quarter. Operating margin was 22.5%, 810 basis points better than the prior-year quarter. Net margin was 14.7%, 660 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $5.90 billion. On the bottom line, the average EPS estimate is $1.54.

Next year's average estimate for revenue is $23.87 billion. The average EPS estimate is $6.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,021 members out of 2,104 rating the stock outperform, and 83 members rating it underperform. Among 627 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 611 give AFLAC a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AFLAC is outperform, with an average price target of $61.25.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Aflac. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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