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Will Aflac (AFL) Q1 Earnings Gain on Product Mix Change?
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Aflac Inc. (AFL - Free Report) is scheduled to report first-quarter 2017 results on Apr 25, after the closing bell.
Last quarter, Aflac missed the Zacks Consensus Estimate by 6.10%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
Aflac’s business in Japan has been suffering from a persistent low interest rate and the same must have impacted earnings in the to-be-reported quarter. Nevertheless, sales from this segment will benefit from an increase in third-sector sales given the company’s emphasis on promoting these products which are less interest rate sensitive. Also, the introduction of a cancer insurance product early last year has been well received in the market place and will contribute to top-line growth.
The company, however, said during the fourth-quarter conference call that its strategic partners were successful in selling Aflac products in 2016. Given the company’s intense focus on moving its own products to meet Japan’s fiscal year-end goals, sales of third-sector products in the first quarter will be impacted.
On the other hand, the company’s efforts in pulling out first-sector products and repricing other products in this category to fight the prolonged low interest rate environment will result in a decline in the sale of these products.
However, the company’s continuous efforts to return capital to its shareholders via share buyback will cushion its bottom line.
Earnings Whispers
Our proven model does not conclusively show that Aflac is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Aflac has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at a $1.62 per share, which is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Aflac carries a Zacks Rank #3 (Hold) which decreases the predictive power of ESP. We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Selective Insurance Group, Inc. (SIGI - Free Report) has an Earnings ESP of +9.59% and a Zacks Rank #2. The company will report first-quarter earnings results on Apr 26.
Fiserv, Inc. has an Earnings ESP of +0.85% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on Apr 26.
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Will Aflac (AFL) Q1 Earnings Gain on Product Mix Change?
Aflac Inc. (AFL - Free Report) is scheduled to report first-quarter 2017 results on Apr 25, after the closing bell.
Last quarter, Aflac missed the Zacks Consensus Estimate by 6.10%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
Aflac’s business in Japan has been suffering from a persistent low interest rate and the same must have impacted earnings in the to-be-reported quarter. Nevertheless, sales from this segment will benefit from an increase in third-sector sales given the company’s emphasis on promoting these products which are less interest rate sensitive. Also, the introduction of a cancer insurance product early last year has been well received in the market place and will contribute to top-line growth.
The company, however, said during the fourth-quarter conference call that its strategic partners were successful in selling Aflac products in 2016. Given the company’s intense focus on moving its own products to meet Japan’s fiscal year-end goals, sales of third-sector products in the first quarter will be impacted.
On the other hand, the company’s efforts in pulling out first-sector products and repricing other products in this category to fight the prolonged low interest rate environment will result in a decline in the sale of these products.
However, the company’s continuous efforts to return capital to its shareholders via share buyback will cushion its bottom line.
Earnings Whispers
Our proven model does not conclusively show that Aflac is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Aflac has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at a $1.62 per share, which is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aflac Incorporated Price and EPS Surprise
Aflac Incorporated Price and EPS Surprise | Aflac Incorporated Quote
Zacks Rank: Aflac carries a Zacks Rank #3 (Hold) which decreases the predictive power of ESP. We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Anthem Inc. , which will will report first-quarter earnings results on Apr 26, has an Earnings ESP of +7.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Selective Insurance Group, Inc. (SIGI - Free Report) has an Earnings ESP of +9.59% and a Zacks Rank #2. The company will report first-quarter earnings results on Apr 26.
Fiserv, Inc. has an Earnings ESP of +0.85% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on Apr 26.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>