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Why Is Aflac (AFL) Down 0.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Aflac (AFL - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aflac due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Aflac’s Q2 Earnings Beat Estimates
Aflac Inc.’s earnings per share of $1.28 beat the Zacks Consensus Estimate by 24.7% and also increased 13.3% year over year.
Total revenues in the quarter declined 1.8% year over year to $5.4 billion and also missed the Zacks Consensus Estimate by 1.9%.Further, total acquisition and operating expenses remained almost unchanged at $1.44 billion.
Weak Segmental Results
Aflac Japan
Total revenues inched up 0.3% year over year at $3.8 billion, led by a 3.9% increase in net investment income. Net premium remained unchanged year over year at $3.2 billion. Pre-tax operating earnings inched up 1% from the prior-year quarter to $839 million.
Results of the segment in the quarter were affected primarily by a reduction in cancer insurance sales through Japan Post.
Aflac United States
Total revenues rose 0.9% year over year to $1.7 billion. Net premium remained unchanged year over year and net investment income decreased 4.4% to $172 million.
Pre-tax operating earnings from the U.S. segment were $426 million, up 26% year over year.
Dividend Update
The board of directors declared the company’s second-quarter dividend of 28 cents per share, payable Sep 1, 2020 to its shareholders of record on Aug 19.
Share Repurchase Update
The company bought back 5.2million shares worth $188 million during the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 5.98% due to these changes.
VGM Scores
Currently, Aflac has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Aflac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Aflac (AFL) Down 0.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Aflac (AFL - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aflac due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Aflac’s Q2 Earnings Beat Estimates
Aflac Inc.’s earnings per share of $1.28 beat the Zacks Consensus Estimate by 24.7% and also increased 13.3% year over year.
Total revenues in the quarter declined 1.8% year over year to $5.4 billion and also missed the Zacks Consensus Estimate by 1.9%.Further, total acquisition and operating expenses remained almost unchanged at $1.44 billion.
Weak Segmental Results
Aflac Japan
Total revenues inched up 0.3% year over year at $3.8 billion, led by a 3.9% increase in net investment income. Net premium remained unchanged year over year at $3.2 billion. Pre-tax operating earnings inched up 1% from the prior-year quarter to $839 million.
Results of the segment in the quarter were affected primarily by a reduction in cancer insurance sales through Japan Post.
Aflac United States
Total revenues rose 0.9% year over year to $1.7 billion. Net premium remained unchanged year over year and net investment income decreased 4.4% to $172 million.
Pre-tax operating earnings from the U.S. segment were $426 million, up 26% year over year.
Dividend Update
The board of directors declared the company’s second-quarter dividend of 28 cents per share, payable Sep 1, 2020 to its shareholders of record on Aug 19.
Share Repurchase Update
The company bought back 5.2million shares worth $188 million during the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 5.98% due to these changes.
VGM Scores
Currently, Aflac has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Aflac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.