Please ensure Javascript is enabled for purposes of website accessibility

Aflac Delivers an Earnings Beat, Declares Dividend, and Withdraws Guidance

By Eric Volkman - Apr 30, 2020 at 4:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The insurance company comfortably outperformed Wall Street's expectations for its first-quarter adjusted net profit.

Shares of supplemental insurance provider Aflac (AFL 2.13%) outpaced the gains of the wider stock market on Wednesday, rising by 3.7%. Much, if not all, of this gain was certainly due to the earnings beat the company posted in its first-quarter results published that morning.

Aflac booked total revenue of $5.16 billion for the quarter, which was down almost 9% from the $5.66 billion it took in during the same period of 2019. Non-GAAP (adjusted) net earnings went in a happier direction, rising nearly 4% to $882 million. Adjusted net earnings per share, exclusive of foreign currency impacts, increased by slightly more than 7% to $1.20. The latter figure comfortably exceeded the average analyst estimate of $1.10.

Coach Nick Saban on a couch with the Aflac duck mascot.

Image source: Aflac.

Like so many other companies considering the economic uncertainties caused by the coronavirus pandemic, Aflac has withdrawn its guidance for 2020. "However, we will continue to provide color on the drivers of our earnings and any trends that we see for the remainder of the year," the company promised in the earnings release.

Finally, the board of directors declared that the insurer's second-quarter dividend will be $0.28 per share, which matches the previous two distributions. Aflac, by the way, is a Dividend Aristocrat, one of the few S&P 500 stocks that has raised its payout at least once annually for a minimum of 25 consecutive years. The new dividend is to be paid on June 1 to shareholders of record as of May 20. It yields 2.9% at Wednesday's closing price.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Aflac. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aflac Incorporated Stock Quote
Aflac Incorporated
AFL
$61.71 (2.13%) $1.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.