AFLAC (NYSE: AFL) reported earnings on Oct. 23. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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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