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Aflac Incorporated (AFL), with a market cap of $53.7 billion, operates in the supplemental health and life insurance sector through its U.S. and Japan segments. Based in Columbus, Georgia, the company is expected to unveil its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 31.
Before the upcoming earnings report, analysts predict AFL to post a profit of $1.59 per share, a slight increase from $1.58 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. AFL reported an EPS of $1.66 in the most recent quarter, exceeding the consensus EPS estimate by a 5.1% margin.
For fiscal 2024, analysts expect AFL to report EPS of $6.44, up 3.4% from $6.23 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 5.9% annually to $6.82.
Over the past 52 weeks, AFL surged 30.7%, outperforming the broader S&P 500 Index's ($SPX) 22.7% rise and the S&P 500 Financials Sector SPDR's (XLF) 22.2% gain over the same period.
Shares of AFL dipped 9.7% following its Q4 earnings release on Jan. 31 due to its earnings and revenue missing analyst estimates, lower-than-expected variable investment income, the negative impact of a weaker forex rate, and an after-tax loss related to a reinsurance treaty novation. Moreover, despite its better-than-expected Q1 earnings disclosed on May 1, the stock declined marginally the next day due to persistent concerns about the forex rate and a 6% decline in Aflac Japan's net earned premiums.
Analysts' consensus rating on Aflac stock is cautious, with a "Hold" rating overall. Out of 16 analysts covering the stock, opinions include two "Strong Buys," one "Moderate Buy," 10 "Holds," and three "Strong Sells."
The above configuration is slightly less bullish than three months ago, with two “Strong Sell” ratings on the stock. As of writing, AFL stock is trading above the average analyst price target of $85.78.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
