NYSE$AFL

Aflac Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Aflac reported strong earnings, driven by growth initiatives and effective capital management.

Aflac Incorporated reported second quarter net earnings of $1.6 billion, or $2.71 per diluted share, compared to $1.4 billion, or $2.17 per diluted share a year ago. Total revenues were $5.2 billion, slightly down from $5.3 billion in the second quarter of 2022. Adjusted earnings were $954 million, up 1.0% from the previous year, with adjusted earnings per diluted share increasing 7.5% to $1.58. The company deployed $700 million in capital to repurchase 10.5 million of its common shares.

  • Net earnings for the second quarter reached $1.6 billion, or $2.71 per diluted share.
  • Total revenues for the second quarter amounted to $5.2 billion.
  • Adjusted earnings increased by 1.0% to $954 million.
  • Aflac deployed $700 million to repurchase 10.5 million common shares.

Headline financials

Total Revenue

$5.17B

Previous: $5.4B-4.2%
EPS (adj)

$1.58

Previous: $1.46+8.2%
Annualized ROE

32.5%

No prior period
Free Cash Flow

$1.63B

Previous: $1.39B+17.7%
Net Income

$1.63B

Previous: $1.39B+17.7%
Operating Income

$1.14B

Previous: $1.13B+0.4%
Gross Profit

$2.87B

Previous: $2.83B+1.3%
Cash & Equivalents

$116B

Previous: $121B-4.1%
Total Assets

$131B

Previous: $136B-3.7%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.17B

Q2 2023-4.2%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
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 is focused on initiatives in the U.S. and Japan around new products and distribution strategies. They are committed to prudent liquidity and capital management, extending dividend growth, and repurchasing shares.

Tailwinds

  • Improvements through agencies and strategic alliances in Japan.
  • Encouraged by early sales results of Japan Post Company and Japan Post Insurance.
  • Looking to gain new customers through products like WAYS and Child Endowment.
  • Continued improvement in the productivity of agents and brokers in the U.S.
  • Committed to extending track record of dividend growth.

Headwinds

  • Difficult conditions in global capital markets and the economy, including inflation and the continued effects caused by COVID-19.
  • Defaults and credit downgrades of investments.
  • Global fluctuations in interest rates and exposure to significant interest rate risk.
  • Concentration of business in Japan.
  • Limited availability of acceptable yen-denominated investments.

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 2023

Historical avgQ2 2023

+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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