Good Earnings for AFLAC and Fiserv

In October, AFLAC (AFL) said to expect Q4 EPS between $1.08 and $1.16. Well…they made $1.18 a share which was three cents higher than the Street.

For the full year, the company earned $1.5 billion, or $3.19 per share, compared with profit of $1.25 billion, or $2.62 per share, during the same period a year prior. Revenue rose to $18.25 billion from $16.55 billion.
The company expects profit growth in 2010 to between $5.24 and $5.56 per share. Analysts expect profit of $5.29 per share.
Also, the company said its board of directors declared the first quarter cash dividend of 28 cents per share, which is payable March 1 to shareholders of record at the close of business on Feb. 16.

Going by the company’s projection, the stock is going for about 9.0 to 9.5 times this year’s earnings.
One other thing to note: AFLAC announced a Q1 dividend of 28 cents a share which is what it’s been for all of 2009. I believe AFLAC has the longest current streak of double-digit dividend increases. I can’t be positive, but I’ve looked hard and I haven’t found anyone who’s done it longer. Since the year isn’t over, the streak hasn’t been snapped just yet, but I hope the board keeps the streak going. If the board raises the dividend to 32 cents for the next three quarters, then the streak will live on.
Also, Fiserv‘s (FISV) earnings were in line:

Fiserv Inc.’s (FISV) fourth-quarter earnings soared 90% as it shed prior-year charges and revenue rose slightly.
Chief Executive Jeffrey Yabuki called the period strong, adding that record December sales helped drive growth in sales, which topped expectations, helping push shares up 1.3%, to $47 in after-hours trading.
For 2010, the company expects earnings of $3.96 to $4.07 a share, bracketing Wall Street’s average estimate of $4.05, according to Thomson Reuters.
Fiserv provides information technology to the financial and insurance industries. It offers services that include electronically posting checks, opening accounts and tracking loans. The company has previously been able to generate stable revenue despite continuing economic pressure on the financial sector.
Fiserv reported earnings of $118 million, or 76 cents a share, up from $62 million, or 39 cents a share, a year earlier. Earnings from continuing operations, excluding integration costs and other items, rose to 94 cents from 89 cents. Revenue climbed 2.1%, to $1.06 billion.
Analysts polled by Thomson Reuters expected earnings of 94 cents with revenue of $1.04 billion.
Excluding items, operating margin fell to 28.1% from 30.1%.

I like companies that make projections for the year ahead. Like AFLAC, Fiserv is going for a reasonable price based on next year’s earnings.

Posted by on February 3rd, 2010 at 6:37 am


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