Aflac's Q3 2024 Earnings: What to Expect

Aflac Incorporated (AFL), headquartered in Columbus, Georgia, provides supplemental health and life insurance products. Valued at $64.8 billion by market cap, the company’s products include accident and disability, cancer expense, short-term disability, sickness and hospital indemnity, hospital intensive care, and fixed-benefit dental plans. The largest provider of supplemental insurance is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Oct. 30. 

Ahead of the event, analysts expect AFL to report a profit of $1.69 per share on a diluted basis, down 8.2% from $1.84 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect AFL to report EPS of $6.79, up 9% from $6.23 in fiscal 2023. Its EPS is expected to rise 5% year over year to $7.13 in fiscal 2025. 

AFL stock has outperformed the S&P 500’s ($SPX) 22.5% gains on a YTD basis, with shares up 38.6% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 26.3% gains over the same time frame.

AFL's outstanding market performance can be attributed to a reduction in benefits and claims, efficient operating expenses, high investment income, and strong growth in premium sales across both its segments. 

On Jul. 31, AFL shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $1.83 exceeded Wall Street expectations of $1.59. The company’s revenue was $5.1 billion, surpassing Wall Street forecasts of $4.4 billion. The company’s new product launch, which includes a future nursing care coverage feature, helped revive sales, driving a 4.5% increase in sales for the quarter at its Japanese unit.

Analysts’ consensus opinion on AFL stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, two advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 11 give a “Hold” rating, and three recommend a “Strong Sell.” While AFL currently trades above its mean price target of $101.07, the Street-high price target of $124 suggests an upside potential of 8.4%.

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On the date of publication, Neha Panjwani 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.