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Aflac reiterates 2014 EPS growth of 2-5%

  • Revenue of $5.8B fell 9% from a year ago thanks to the big slide in the yen. Operating earnings per share of $1.40 fell from $1.48 a year ago, with the weaker yen accounting for $0.18 of the drop.
  • Company repurchased 7.6M shares for $502M, bringing full year buybacks to 13.2M shares for $800M. The current authorization has 49.2M more shares available.
  • Book value of $31.82 per share is up from $31.47 at the end of Q3. Annualized ROE on an operating basis in Q4 of 18.5% would have been 22.4% without the impact of the yen.
  • 2014 outlook: U.S. sales growth flat to up 5%; Japan sales of third sector cancer and medical products up 2%-7%. Goal is to increase operating EPS by 2-5% on a currency neutral basis. Share repurchases will help, but headwinds include the low interest rate environment in Japan, sizable infrastructure investments to be made in both the U.S. and Japan, and a boost in Japan's consumption tax to 8% from 5%.
  • Press release, Q4 results
  • CC tomorrow at 9 ET
  • AFL -0.8% AH
Comments (1)
  • positivethoughts
    , contributor
    Comments (1760) | Send Message
     
    Invest outside of bonds PLEASE!
    5 Feb, 08:21 AM Reply Like
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