Aflac IncorporatedAFL
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Q2 revenue declined 6.9% and EPS met estimates, with management citing tough comparisons and analysts questioning sustainability.
Impact on stocks 1
Financials
Aflac IncorporatedAflac reported second-quarter revenue of $4.22 billion, a 6.9% year-on-year decline that was in line with analyst estimates of $4.23 billion, while adjusted EPS of $1.75 also matched expectations of $1.76. Management attributed the drop largely to tough comparisons in Japan following last year's launch of the Miraito cancer insurance product, though new offerings like Tsumitasu and Anshin Palette produced solid growth. In the U.S., sales growth was modest but supported by strength in group voluntary products and network dental and vision, with disciplined expense management helping to preserve margins. During the earnings call, analysts questioned the sustainability of asset repositioning efforts, the appetite for larger M&A deals, sequential declines in Japanese medical sales, the impact of inflation and higher rates on policy lapses, and the capital freed by expanding Japanese reinsurance. Aflac currently trades at $120.60, down from $126.66 just before the earnings.
Aflac IncorporatedQ2 revenue declined 6.9% and EPS met estimates, with management citing tough comparisons and analysts questioning sustainability.