Aflac Posts 8% Rise in Q4 Profit; Weaker Yen Pulls Down Gains (AFL)

Aflac Posts 8% Rise in Q4 Profit; Weaker Yen Pulls Down Gains (AFL)


Insurance company Aflac Incorporated (AFL) released its fourth-quarter earnings report after the bell on Tuesday, reporting a rise in earnings despite struggles from a weaker yen.

The Columbus, Georgia-based company posted a net income of $581 million, or $1.24 per share, in the fourth-quarter. This was up 8% compared to the $538 million, or $1.15 per share, earned in the same period a year earlier.

Adjusting for one-time items such as investment gains and losses, the company said its operating income was $697 million, or $1.48 per share. This slightly beat the Wall Street view, as analysts, according to FactSet, were expecting adjusted EPS to be $1.47.

Revenue for the fourth-quarter rose about 7% to $6.38 billion. This missed the analyst view of $6.42 billion.

Aflac benefited from a 10.5% rise in total revenues from the company’s Japan unit, where it does a significant portion of its business. This rise in revenue helped offset a 4.4% negative impact in the exchange rate from the yen to the dollar as the Bank of Japan devalues its currency to help stimulate its economy.

Looking forward to 2013 earnings, the company reiterated its projection that operating income will be in a range between $6.37 to $6.57 per share. Analysts forecast an EPS of $6.59.

Aflac shares were down 50 cents, or -0.93%, during pre-market trading on Wednesday. In the trailing twelve months, the stock is up +7.02%.

The Bottom Line
Shares of Aflac (AFL) have a dividend yield of 2.62% based on last night’s closing price of $53.49 and the company’s annualized dividend of $1.40 per share.

Aflac Incorporated (AFL) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

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