Supplemental insurance provider Aflac (NYSE: AFL) will be reporting results this Thursday after the bell. Here’s what investors should know.
Aflac missed analysts’ revenue expectations last quarter, reporting revenues of $4.24 billion, down 1.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ book value per share estimates but a significant miss of analysts’ EPS estimates.
Is Aflac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Aflac’s revenue to decline 6.7% year on year, a reversal from the 3.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Aflac has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Aflac’s peers in the life insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Jackson Financial delivered year-on-year revenue growth of 136%, missing analysts’ expectations by 91.2%, and CNO Financial Group reported revenues up 5.5%, topping estimates by 1.4%. Jackson Financial traded up 5.9% following the results while CNO Financial Group was also up 3%.
Read our full analysis of Jackson Financial’s results here and CNO Financial Group’s results here.
Investors in the life insurance segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Aflac is up 4.3% during the same time and is heading into earnings with an average analyst price target of $117.71 (compared to the current share price of $125.66).
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