NYSE$AFL

Aflac Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Aflac reported third quarter results with net earnings of $888 million and adjusted earnings per diluted share of $1.53.

Aflac Incorporated reported third quarter net earnings of $888 million, or $1.32 per diluted share. Total revenues were $5.2 billion, compared to $5.7 billion in the same quarter of the previous year. Adjusted earnings per diluted share increased by 10.1% to $1.53.

  • Total revenues were $5.2 billion, compared with $5.7 billion in the third quarter of 2020.
  • Net earnings were $888 million, or $1.32 per diluted share.
  • Adjusted earnings per diluted share increased 10.1% to $1.53.
  • Aflac Japan's pretax adjusted earnings increased 30.7% to $976 million.

Headline financials

Total Revenue

$5.24B

Previous: $5.67B-7.6%
EPS (adj)

$1.53

Previous: $1.39+10.1%
Annualized ROE

10.6%

Previous: 31.7%-66.6%
Free Cash Flow

$888M

Previous: $2.46B-63.8%
Net Income

$888M

Previous: $2.46B-63.8%
Operating Income

$1.29B

Previous: $1.04B+24.7%
Gross Profit

$2.35B

Previous: $2.39B-1.6%
Cash & Equivalents

$146B

Previous: $146B-0.1%
Total Assets

$161B

Previous: $161B-0.2%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.24B

Q3 2021-7.6%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
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 small businesses to continue in recovery mode through the rest of the year, while larger businesses have shown better potential for sales in the fourth quarter. The company remains committed to prudent liquidity and capital management and will continue to tactically repurchase shares.

Tailwinds

  • September launch of the new nursing care product was off to a promising start.
  • Ability to meet face-to-face with customers appears to be improving gradually.
  • Larger businesses have been more resilient and have shown better potential for sales in the fourth quarter.
  • Committed to prudent liquidity and capital management.
  • Continue to tactically repurchase shares.

Headwinds

  • Pandemic conditions were more challenging in Japan.
  • Widespread states of emergency persisted through the third quarter in Japan.
  • Small businesses are still in recovery mode.
  • Third quarter sales were essentially flat year over year in Japan.
  • New nursing care product will take time to have a measurable impact on overall sales outlook.

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 Q3 2021

Historical avgQ3 2021

+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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