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Aflac's Q4 Results: What Investors Need to Know

AInvestTuesday, Jan 7, 2025 4:46 pm ET
4min read


Aflac Incorporated (NYSE: AFL) is set to release its fourth quarter 2024 financial results after market close on February 5, 2025, followed by a conference call webcast on February 6, 2025, at 8:00 a.m. ET. As investors gear up for the earnings announcement, let's take a closer look at what they can expect and the key metrics to focus on.



Market Expectations and Earnings History

Aflac is expected to report earnings per share (EPS) of $1.47, indicating a 14% improvement from the prior-year quarter's reported figure. The consensus mark for revenues is $4.4 billion, suggesting 10.8% growth from the year-ago quarter's reported number. Aflac boasts an impressive earnings surprise history, with its bottom line beating estimates in each of the trailing four quarters, the average surprise being 14.50%. The company's proven model predicts an earnings beat for Aflac this time around, with an Earnings ESP of +0.57% and a Zacks Rank of 2 (Buy).

Key Financial Metrics and Operational Indicators

Investors will be focusing on key financial metrics and operational indicators when Aflac releases its fourth quarter results, which may impact the company's stock price. These include:

1. Revenue and Earnings Growth: Investors will closely examine the year-over-year (YoY) and quarter-over-quarter (QoQ) growth in revenue and earnings. Aflac's earnings beat history and the consensus estimate of $1.47 EPS will be crucial in determining the stock's performance.
2. Net Premiums Earned: This metric indicates the growth in Aflac's core business. Investors will look for improvements in net premiums earned in both the Japan and U.S. segments.
3. Expense Ratio: A lower expense ratio indicates better cost management. Investors will be looking for an improvement in this metric, which can positively impact Aflac's profitability.
4. Benefit Ratio: A lower benefit ratio suggests better underwriting performance. Investors will be focusing on any improvements in this metric, as it can indicate a more profitable quarter.
5. Dividend Payout: Aflac's dividend payout and growth will be an essential factor for investors, as it reflects the company's commitment to returning capital to shareholders.



Strategic Initiatives and Long-Term Growth Prospects

Aflac has recently undertaken several strategic initiatives and acquisitions to drive long-term growth. In 2024, the company announced a 16.0% increase in its first quarter dividend, reflecting its strong financial performance and commitment to returning capital to shareholders (PRNewswire, Dec. 2, 2024). Additionally, Aflac has expanded its product offerings and entered new markets, such as the launch of its My Special Aflac Duck® robotic companion in the Sacramento Valley (PRNewswire, Nov. 21, 2024). These initiatives, along with the company's focus on innovation and digital transformation, position Aflac well for long-term growth.

In conclusion, Aflac's fourth quarter results announcement presents an opportunity for investors to assess the company's financial health and growth prospects. By focusing on key financial metrics and operational indicators, investors can make informed decisions about the company's stock price and long-term investment potential. As always, it's essential to stay up-to-date with the latest news and developments surrounding Aflac and the broader insurance industry.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.