AFLAC’s Earnings Call

I’ve been reading the through Seeking Alpha‘s transcript of the AFLAC‘s (AFL) earnings call. By the way, reading through one of these is a great way to learn about a company and where it’s headed. I’m surprised how often good news is hidden in plain sight.

Here’s the company on their outlook:

Lastly, let me comment on the earnings outlook for 2010. As you heard, we have affirmed our objectives for 2010 of a 9% to 12% increase in operating earnings per diluted share, excluding the impact of the yen.

As was mentioned at our Analyst Meeting in May of this year, our expectation is that we will be close to a 10% increase for the full year before currency fluctuations. That would equate to $5.34 for the full year assuming no change in currency from last year’s average.

If operating earnings per share increased 10% this year and the yen averages 80 to 85 for the remainder of the year, we would expect operating earnings per share to be $5.52 to $5.57. Using the same foreign currency assumption, we would expect fourth quarter operating earnings to be $1.31 to $1.36 per diluted share. That compares with the First Call estimate that’s currently out there of a $1.36.

Since AFL is off some today, perhaps the market is interpreting this lower guidance. I have no idea why. The company makes it clear that business is doing well and will continue to do well.

Posted by on October 28th, 2010 at 10:05 am


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