Supplemental insurance provider Aflac (NYSE: AFL) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Aflac missed analysts’ revenue expectations last quarter, reporting revenues of $4.28 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Aflac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Aflac’s revenue to be flat year on year, improving from the 2.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Aflac has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Aflac’s peers in the insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Globe Life delivered year-on-year revenue growth of 5.6%, meeting analysts’ expectations, and Stewart Information Services reported revenues up 27.7%, topping estimates by 4.7%. Globe Life traded up 1.8% following the results while Stewart Information Services was also up 3.9%.
Read our full analysis of Globe Life’s results here and Stewart Information Services’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 6.7% on average over the last month. Aflac is up 6.8% during the same time and is heading into earnings with an average analyst price target of $112.14 (compared to the current share price of $115.53).
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