UBS On Aflac's Q2: About As In Line As They Come

UBS reiterated its Neutral rating on AFLAC Incorporated AFL following a Q2 earnings announcement.

The company reported 2Q16 operating EPS of $1.71, in line with UBS's estimate. "Consolidated earnings were within 1 percent of our forecast with minimal differences at both AFL Japan and AFL U.S in terms of earnings, benefit ratios and margins," the note said.

Related Link: Aflac Affirms 2016 EPS And Sales Guidance

Aflac's 2Q Japan sales dropped 1.1 percent versus the analysts' estimate of 3.6 percent decline, and the U.S. sales were up 1 percent versus the estimate of 4 percent growth.

The company implemented share buybacks of about $400 million in 2Q, consistent with the forecast. "AFL continues to guide to $1.4 billion of buybacks for 2016, of which $1.0 billion has already been completed," wrote UBS. The bank maintained its Neutral rating on the shares with $71 price target; at time of writing, Aflace was down 0.22 percent on the day at $73.16.