The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AFLAC beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins grew, net margins expanded.
AFLAC logged revenue of $6.85 billion. The six analysts polled by S&P Capital IQ predicted revenue of $6.56 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $6.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.77. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.66 per share. GAAP EPS of $2.16 for Q3 were 36% higher than the prior-year quarter's $1.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.6%, 860 basis points worse than the prior-year quarter. Operating margin was 21.6%, 130 basis points better than the prior-year quarter. Net margin was 14.9%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.73 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $25.70 billion. The average EPS estimate is $6.54.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,922 members out of 2,003 rating the stock outperform, and 81 members rating it underperform. Among 523 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 505 give AFLAC a green thumbs-up, and 18 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 $55.63.
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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 has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.