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.
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 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.
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.)
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.
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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