Aflac shares fall after insurer misses quarterly profit estimates

Aflac

01/02/2024 15:38

Feb 1 (Reuters) - Shares of Aflac  AFL.N  fell nearly 9%
on Thursday after the life insurer missed Wall Street estimates
for fourth-quarter profit on the back of a stronger dollar and
weakness in its Japanese unit.
    The company late on Wednesday lowered its 2026 sales
expectations for its business in Japan to a range of 67 billion
to 73 billion yen ($458 million-$498 million), from 80 billion
yen.
    "Our understanding is that the underlying driver is a slower
sales recovery in Japan following COVID," Jefferies analysts
said on the reduced forecast.
    On an adjusted basis, the company reported a profit of $1.25
per share for the fourth quarter, below the average analyst
estimate of $1.45, according to LSEG data.
    Aflac has a forward price to earnings ratio - a common
benchmark for valuing stocks - of 13.06, compared to peers
Lincoln National Corp's  LNC.N  4.02 and Principal Financial
Group's  PFG.O  10.45.
    
($1 = 146.4100 yen)

 (Reporting by Christy Santhosh; Editing by Maju Samuel)
 ((Christy.Santhosh@thomsonreuters.com;))