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A Preview Of Aflac's Earnings

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Aflac (NYSE:AFL) announces its next round of earnings this Wednesday, February 03. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $1.05 and sales around $5.45 billion. In the same quarter last year, Aflac reported earnings per share of $1.03 on sales of $5.60 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 1.94%. Revenue would be down 2.73% from the same quarter last year. Aflac's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.13 1.06 1.10 1.02
EPS Actual 1.39 1.28 1.21 1.03
Revenue Estimate 5.50 B 5.43 B 5.50 B 5.54 B
Revenue Actual 5.67 B 5.41 B 5.16 B 5.60 B

Stock Performance

Shares of Aflac were trading at $45.62 as of February 01. Over the last 52-week period, shares are down 13.25%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Aflac is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings