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Aflac Incorporated Q2 adjusted EPS misses estimates on weaker yen

Aflac Incorporated Q2 adjusted EPS misses estimates on weaker yen


Overview

  • U.S. supplemental insurer's Q2 revenue declined 1%, missing analyst expectations

  • Adjusted EPS for Q2 fell 1.7% to $1.75, missing analyst expectations

  • Company cited weaker yen and lower Japan earnings as factors in quarterly results


Outlook

  • Company did not provide specific financial guidance for the current or future periods in the press release


Result Drivers

  • WEAKER YEN - Co said weaker yen/dollar exchange rate reduced reported adjusted earnings per share by $0.05 in Q2

  • JAPAN SEGMENT - Co said lower Japan net earned premiums were mainly due to new external reinsurance transaction and limited pay products reaching paid-up status

  • HIGHER BENEFITS IN U.S. - Co said U.S. pretax adjusted earnings declined 4.6% in Q2, primarily driven by higher benefits


Company press release: ID:nPn6H9ZZMa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$4.10 bln

$4.16 bln (6 Analysts)

Q2 Adjusted EPS

Miss

$1.75

$1.77 (14 Analysts)

Q2 EPS

$1.63

Q2 Adjusted Net Income

Miss

$883 mln

$911.18 mln (8 Analysts)

Q2 Net Income

$825 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "hold"

  • Wall Street's median 12-month price target for Aflac Incorporated is $116.00, about 7.6% below its August 5 closing price of $125.56

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Aug 5 - MetLife Q2 adjusted profit beats estimates on favorable underwriting, broad-based volume growth

  • Aug 5 - Brighthouse Financial Q2 adjusted EPS misses estimates as investment income falls

  • Aug 5 - Primerica Q2 revenue rises on strong client demand, favorable equity markets


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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