NYSE$AFL

Aflac Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Aflac reported a decrease in total revenues and net earnings, driven primarily by an increase in net investment losses.

Aflac Incorporated reported first quarter results with total revenues of $5.2 billion and net earnings of $566 million, or $0.78 per diluted share. The declines in total revenues and net earnings were primarily driven by an increase in net investment losses. The company withdrew adjusted earnings guidance for 2020 due to the evolving nature of the global COVID-19 pandemic.

  • Total revenues were $5.2 billion, compared to $5.7 billion in the first quarter of 2019.
  • Net earnings were $566 million, or $0.78 per diluted share, compared to $928 million, or $1.23 per diluted share a year ago.
  • Adjusted earnings were $882 million, compared to $849 million in the first quarter of 2019.
  • Adjusted earnings per diluted share increased 8.0% to $1.21 in the quarter.

Headline financials

Total Revenue

$5.16B

Previous: $5.66B-8.8%
EPS (adj)

$1.21

Previous: $1.12+8.0%
Annualized ROE

8.2%

No prior period
Free Cash Flow

$566M

Previous: $928M-39.0%
Net Income

$566M

Previous: $928M-39.0%
Operating Income

$1.18B

Previous: $1.14B+3.9%
Gross Profit

$1.89B

Previous: $2.35B-19.6%
Cash & Equivalents

$137B

Previous: $3.89B+3419.2%
Total Assets

$152B

Previous: $146B+4.1%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.16B

Q1 2020-8.8%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Aflac · $5.07B total across 3 segments · Q1 2022

  • Aflac Japan Revenue
    $3.4B
  • Aflac U.S. Revenue
    $1.6B
  • Corporate and Other Revenue
    $74M-10.8%

Forward guidance

Aflac withdrew its adjusted earnings guidance for 2020, citing challenges to production and potential volatility in core earnings drivers associated with the global COVID-19 pandemic.

Tailwinds

  • The company ended the first quarter with strong earnings.
  • The company has a strong, well-diversified portfolio.
  • The company has strong capital ratios.
  • The company has ample holding company liquidity.
  • The company remains committed to defending and extending its 37-year track record of annual dividend increases.

Headwinds

  • Sales production in both Japan and the U.S. began to fall off in March.
  • The decline in sales production accelerated in April.
  • Sales are impacted by a reduction in face-to-face activity.
  • The company believes these trends point to depressed sales at least until COVID-19 restrictions subside.
  • It is challenging to forecast with reasonable accuracy the full duration, magnitude, and pace of recovery across our distribution and operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.7%

Avg return

30 days after

63%

46 / 73 earnings

Positive

+9.4%

Q1 2012

Best reaction

-11.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-1.5%-3.3%
Q4 2025+3.4%+2.0%-2.1%
Q3 2025+2.3%+4.4%+0.4%
Q2 2025+3.4%+5.3%+8.1%
Q1 2025-4.7%-2.6%-4.7%
Q4 2024-3.9%-4.0%+1.0%
Q3 2024-4.7%-5.0%+3.6%
Q2 2024+6.6%+1.9%+15.7%
Q1 2024+0.5%+1.3%+7.4%
Q4 2023-11.1%-11.0%-6.2%
Q3 2023+4.6%+4.2%+5.8%
Q2 2023+5.4%+6.2%+3.1%
Q1 2023+5.6%+7.0%-1.9%
Q4 2022-6.3%-5.3%-6.9%
Q3 2022+3.1%+3.7%+11.0%
Q2 2022+2.5%+3.7%+3.7%
Q1 2022-2.5%-5.7%-0.6%
Q4 2021+1.4%+3.8%-4.4%
Q3 2021-3.1%-4.0%-2.7%
Q2 2021+3.4%+1.7%+6.1%
Q1 2021+1.3%+1.8%+5.9%
Q4 2020-1.2%-0.1%+7.9%
Q3 2020-7.1%-7.7%+24.0%
Q2 2020+0.2%-2.4%+1.2%
Q1 2020-1.5%-5.4%-3.5%
Q4 2019+2.4%+1.8%-20.1%
Q3 2019+1.5%+2.1%+2.9%
Q2 2019-0.1%-1.9%-10.3%
Q1 2019+1.3%+3.0%+6.4%
Q4 2018+1.2%+1.8%+3.8%
Q3 2018-4.7%-4.5%+0.5%
Q2 2018+5.8%+6.3%+6.6%
Q1 2018+1.1%+0.9%+0.4%
Q4 2017+1.3%-2.7%-1.2%
Q3 2017-1.1%-0.9%+0.5%
Q2 2017+2.6%+4.6%+4.6%
Q1 2017+0.1%+0.3%+0.1%
Q4 2016-4.5%-2.5%+2.6%
Q3 2016-1.8%-2.0%+2.8%
Q2 2016-1.5%-2.4%-0.8%
Q1 2016+2.1%
Q4 2015-1.2%
Q3 2015+0.7%
Q2 2015+4.9%
Q1 2015-0.2%
Q4 2014+4.3%
Q3 2014+1.9%
Q2 2014-3.6%
Q1 2014+1.4%
Q4 2013+1.7%
Q3 2013-2.2%
Q2 2013+1.1%
Q1 2013+3.7%
Q4 2012-3.2%
Q3 2012-1.5%
Q4 2011+4.2%
Q2 2012-2.7%
Q1 2012+9.4%
Q3 2011-0.1%
Q2 2011-10.8%
Q1 2011+1.9%
Q4 2010+2.9%
Q3 2010-1.2%
Q2 2010+0.3%
Q1 2009+7.5%
Q1 2010+1.8%
Q4 2007+1.7%
Q4 2009+1.7%
Q3 2009+3.1%
Q3 2008+3.1%
Q2 2008+2.9%
Q4 2008+2.9%
Q2 2009+2.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro