NYSE$AFL

Aflac Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Aflac reported second quarter net earnings, which included net investment gains, but were impacted by a weaker yen.

Aflac Incorporated reported second quarter results with total revenues of $5.4 billion and net earnings of $1.4 billion, or $2.16 per diluted share. Adjusted earnings were $939 million, or $1.46 per diluted share. The results were impacted by the weaker yen/dollar exchange rate.

  • Total revenues were $5.4 billion in the second quarter of 2022, compared with $5.6 billion in the second quarter of 2021.
  • Net earnings were $1.4 billion, or $2.16 per diluted share, compared with $1.1 billion, or $1.62 per diluted share a year ago.
  • Adjusted earnings in the second quarter were $939 million, compared with $1.1 billion in the second quarter of 2021, reflecting a decrease of 13.1%.
  • Aflac Japan's net earned premiums were down 4.2% in yen terms, while Aflac U.S. net earned premiums declined 1.0%.

Headline financials

Total Revenue

$5.4B

Previous: $5.56B-2.9%
EPS (adj)

$1.46

Previous: $1.59-8.2%
Free Cash Flow

$1.39B

Previous: $1.11B+25.6%
Net Income

$1.39B

Previous: $1.11B+25.6%
Operating Income

$1.13B

Previous: $1.34B-15.4%
Gross Profit

$2.83B

Previous: $2.63B+7.7%
Cash & Equivalents

$121B

Previous: $147B-17.2%
Total Assets

$136B

Previous: $161B-16.0%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.4B

Q2 2022-2.9%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
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 expects stronger sales in the second half of the year in Japan, assuming pandemic conditions subside, productivity continues to improve at Japan Post, and they execute on their product introduction and refreshment plans. They continue to work toward reinforcing their position and generating stronger sales for the year in the U.S., while keeping an eye on potential headwinds.

Tailwinds

  • Company generated solid earnings for the first six months.
  • Supported in part by the continuation of low benefit ratios associated with pandemic conditions.
  • Supported in part by better-than-expected returns from alternative investments, despite the weakening yen.
  • Continued momentum in core voluntary business in the U.S.
  • Contribution from newly acquired growth platforms of dental, vision, and group benefits in the U.S.

Headwinds

  • Weaker yen.
  • Sales were constrained in Japan as they continued to operate in evolving pandemic conditions.
  • This impacted their ability to meet face-to-face with customers in Japan, which continues to be key to a recovery in sales.
  • Keeping an eye on potential headwinds in the U.S.
  • Remaining in a defensive position as they monitor evolving economic conditions.

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 Q2 2022

Historical avgQ2 2022

+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%

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