Aflac Earnings Preview: Analysts Expect 30% EPS Increase

Aflac poised for Q4 earnings report, eyeing $1.63 EPS, a 30% rise from last year. While showing strong EPS growth, concerns arise over revenue decline. Investors await further clarity on Aflac's performance.

Date: 09-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Aflac is anticipated to report earnings of $1.63 per share for Q4, which represents a substantial increase of 30.4% compared to $1.25 from the previous year. This growth aligns positively with the company's recent history of beating Wall Street's estimates in three of the last four quarters.

In the fiscal Q3, the company reported an EPS of $2.16, significantly exceeding consensus estimates by 27.1%. For the full fiscal year, projections indicate an EPS of $7.27, reflecting an impressive increase of 16.7% from $6.23 reported in fiscal 2023.

Net Income
The analysis does not specify net income figures. However, the expected rise in EPS indicates a positive influence on overall profitability.

Revenue Growth
Conversely, Aflac's revenue fell 40.4% year-over-year to $2.95 billion, which did not meet market projections. This decline, driven by weaker U.S. results and reduced share buybacks, raises investor concerns, especially as it contrasts sharply with the company's positive EPS outlook.

Market Performance
Aflac's shares have increased by 24.3% over the past year, although this is less than the S&P 500's 25.8% rise and the Financial Select Sector SPDR Fund’s 28% return. The company has faced challenges due to increased competition, regulatory issues, and slower market growth, making it sensitive to shifts in the supplemental insurance market. This underperformance led to a 4.8% decline following its mixed Q3 earnings announcement.

Analysts' consensus on Aflac stock remains cautious with a predominantly "Hold" rating among 17 analysts. Despite a few recommending a Buy, the overall sentiment implies a lack of strong bullish predictions. The average price target is set at $104, indicating a modest potential upside of 1.1% from current levels. Aflac's upcoming earnings report will be pivotal in shaping future investor sentiment and stock performance.

Stocks: AFL