AFLAC Earns $1.47 Per Share, Raises Dividend 5.7%

After the closing bell, AFLAC ($AFL) reported Q3 earnings of $1.47 per share which was one penny below Wall Street’s forecast. In July, the company gave us a range for Q3 of $1.41 to $1.51 per share, so at least AFLAC is hitting its own guidance. The problem continues to be the yen/dollar exchange rate which knocked 21 cents per share off AFLAC’s earnings last quarter.

If you ignore the exchange rate issue, AFLAC’s operations are doing just fine. The company also gave forward guidance which assumes a yen/dollar rate between 95 and 100. Here are the details: AFLAC narrowed its full-year 2013 guidance to $6.16 to $6.21 per share. The previous range was $5.83 to $6.37 per share. For Q4, AFLAC expects earnings between $1.38 and $1.43 per share. Wall Street had been expecting $1.42 per share. Excluding the exchange rate, AFLAC aims to grow operating earnings by 4% to 7% this year.

AFLAC also gave its first guidance for 2014, again assuming a 95 to 100 exchange rate. For next year, they see earnings coming in between $6.28 and $6.52 per share. They’re aiming to grow operating earnings by 2% to 5% next year.

I have to stress that this is all in earnings-per-share because AFLAC plans to buy back a whole lot of shares. The company plans to buy $800 million of shares this year, and another $800 million to $1 billion next year.

AFLAC also raised their dividend by 5.7%. The quarterly payout rises from 35 to 37 cents per share. This is the 31st year in a row that AFLAC has raised their dividend.

Posted by on October 30th, 2013 at 12:04 am

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