AFLAC Earns $1.74 Per Share for Q1

In last week’s CWS Market Review, I said that Wall Street’s consensus for AFLAC’s figure of $1.65 per share was “almost certainly too low.” I said that results would probably be close to $1.70 per share. Even an AFLAC bull like me was too low.

AFLAC ($AFL) just reported Q1 operating earnings of $1.74 per share. (Remember that with insurance companies we always want to look at operating earnings.) That’s up from $1.62 per share one year ago. The yen/dollar exchange rate increased earnings by four cents per share.

CEO Dan Amos said, “We are pleased with our overall results in the first quarter of 2012. Aflac Japan gets high marks for another great quarter. The tremendous sales momentum they again generated this quarter was largely propelled by success in selling through banks. Aflac Japan’s first quarter production set an all-time new annualized premium sales record for the third quarter in a row. More importantly, we believe the first quarter has positioned us for another strong year of sales activities in Japan. As a result, we now expect Aflac Japan’s full year sales to increase 10%, compared with our previous expectation of a sales decline.”

AFLAC also reiterated its full-year earnings forecast of $6.46 to $6.65 per share. The stock is up to $44 per share in the after-hours market.

Posted by on April 24th, 2012 at 5:20 pm

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