AFLAC Earns $1.45 Per Share

AFLAC (AFL) just reported Q3 operating earnings today of $1.45 per share. (I have to apologize because this was a surprise. For some reason, I was expecting AFL’s earnings tomorrow.)

For insurance companies, we always want to look at the operating number. The company said to expect $1.35 to $1.38 per share. Wall Street was expecting $1.39 per share.

These are great results. I can’t believe this stock is going for 38 times quarterly earnings.

The average exchange rate of the yen in the quarter was 85.74 to the dollar, stronger than 93.56 a year earlier. The yen hit 15-year highs against the dollar in the quarter.

For the year, Aflac expects operating earnings of $5.52 to $5.57 per share, assuming the yen averages somewhere between 80 and 85 to the dollar in the fourth quarter.

Aflac also warned that, if interest rates stay at historically low levels, operating earnings growth in 2011 would likely be at the low end of its forecast range — 8 percent to 12 percent before currency impacts.

Posted by on October 26th, 2010 at 4:58 pm


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