Here's What Key Metrics Tell Us About Aflac (AFL) Q4 Earnings

Aflac (AFL) reported $4.01 billion in revenue for the quarter ended December 2022, representing a year-over-year decline of 26.2%. EPS of $1.29 for the same period compares to $1.28 a year ago.

The reported revenue represents a surprise of -10.69% over the Zacks Consensus Estimate of $4.49 billion. With the consensus EPS estimate being $1.21, the EPS surprise was +6.61%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Aflac performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Tot. Ben./Premium - Aflac U.S. 40.8% versus 46.74% estimated by three analysts on average.
  • Total Adjusted Expenses/Total Adj. Rev. - Aflac Japan: 22.9% compared to the 22.43% average estimate based on three analysts.
  • Tot. Ben./Premium - Aflac Japan: 66.2% versus the three-analyst average estimate of 69.42%.
  • Total Adjusted Expenses/Total Adj. Rev. - Aflac U.S. 44% compared to the 41.15% average estimate based on three analysts.
  • Revenues-Aflac Japan: $2.78 billion versus the four-analyst average estimate of $2.75 billion.
  • Revenues-Aflac US: $1.62 billion versus $1.61 billion estimated by four analysts on average.
  • Revenues-Aflac Japan-Other income: $7 million compared to the $8.30 million average estimate based on three analysts.
  • Revenues-Aflac US-Other income: $41 million versus $35.83 million estimated by three analysts on average.
  • Revenues-Aflac US-Earned premiums: $1.39 billion compared to the $1.37 billion average estimate based on three analysts.
  • Revenues-Aflac US-Net investment income: $192 million versus the three-analyst average estimate of $201.12 million.
  • Net premium earned: $3.59 billion versus the four-analyst average estimate of $3.54 billion.
  • Other income (loss): $50 million versus $46.50 million estimated by three analysts on average.

View all Key Company Metrics for Aflac here>>>

Shares of Aflac have returned +2.7% over the past month versus the Zacks S&P 500 composite's +6.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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