NYSE$AFL

Aflac Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Aflac reported strong Q3 2023 earnings, driven by growth initiatives and favorable performance in both the U.S. and Japan segments.

Aflac Incorporated reported third-quarter net earnings of $1.6 billion, or $2.64 per diluted share, compared to $1.8 billion, or $2.82 per diluted share a year ago. Total revenues were $5.0 billion, up from $4.7 billion in the third quarter of 2022. Adjusted earnings increased by 20.3% to $1.1 billion, with adjusted earnings per diluted share rising by 27.8% to $1.84.

  • Total revenues increased to $5.0 billion, compared to $4.7 billion in the third quarter of 2022.
  • Net earnings were $1.6 billion, or $2.64 per diluted share.
  • Adjusted earnings increased by 20.3% to $1.1 billion.
  • Aflac Japan's pretax adjusted earnings increased 11.4% in yen terms.

Headline financials

Total Revenue

$4.95B

Previous: $4.82B+2.7%
EPS (adj)

$1.84

Previous: $1.15+60.0%
Free Cash Flow

$1.57B

Previous: $1.6B-1.7%
Net Income

$1.57B

Previous: $1.6B-1.7%
Operating Income

$1.3B

Previous: $880M+47.5%
Gross Profit

$2.89B

Previous: $2.21B+30.6%
Cash & Equivalents

$111B

Previous: $115B-2.8%
Total Assets

$125B

Previous: $128B-2.3%

Revenue & EPS history

Aflac · Revenue · Quarterly

$4.95B

Q3 2023+2.7%vs Q3 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 numerous initiatives in the U.S. and Japan around new products and distribution strategies to set the stage for future growth. The company continues to generate strong capital and cash flows while maintaining its commitment to prudent liquidity and capital management.

Tailwinds

  • Improvements through agencies and alliances, including Japan Post, Dai-ichi Life and Daido Life.
  • Early indications show that the new medical product introduced in mid-September is being well-received.
  • Products like WAYS and Child Endowment as door-openers to gain new customers.
  • Continued improvement in the productivity of agents and brokers in the U.S.
  • Contribution from growth initiatives, including group life and disability; network dental and vision; and consumer markets in the U.S.

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 Q3 2023

Historical avgQ3 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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