Seeking Alpha

Aflac boosts capital returns amid "several headwinds"

  • Operating earnings of $687M or $1.47 per share fell from $831M or $1.77 per share a year ago, with $0.21 of the decline due to the yen's decline. Excluding the yen's impact, operating earnings fell 5.1%.
  • About 308K shares repurchased in Q3 for roughly $18.5M, a far slower pace than the rest of the year - for the first 9 months of 2013, 5.6M shares were repurchased for $298M. Management expects full year repurchase total to be $800M, ahead of pervious guidance of $400M-$600M. 2014 buybacks are expected to be $800M-$1B compared to previous guidance of $600M-$900M.
  • Book value per share of $31.47 vs. $29.46 at end of Q2.
  • The quarterly dividend is boosted 5.7% to $0.37 per share for annualized yield of 2.21%.
  • FY2014 operating EPS expected at $6.28-$6.52 if the yen averages ¥95-¥100 to the dollar. It represents a growth rate of 2-5% thanks to buybacks balancing out "several headwinds," including low rates in Japan, spending plans here and in Japan, and an increase in Japan's consumption tax starting in April.
  • Conference call tomorrow at 9 ET.
  • Q3 results, press release.
  • AFL -0.7% AH.
Comments (1)
  • Doug Meeks
    , contributor
    Comments (1423) | Send Message
    Over exposed to the yen. Best of luck to all.
    29 Oct 2013, 08:29 PM Reply Like
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