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Investing.com -- Aflac Incorporated (NYSE:AFL) reported first quarter earnings that narrowly missed analyst estimates, while revenue fell significantly below expectations, sending shares down 2.9% in after-hours trading.
The insurance company posted adjusted earnings per share of $1.66 for the first quarter of 2025, just $0.02 below the analyst consensus of $1.68. However, revenue came in at $3.4 billion, well below the $4.26 billion analysts had projected.
Total (EPA:TTEF) revenues declined 37% YoY from $5.4 billion in Q1 2024, primarily due to net investment losses of $963 million this quarter compared to net investment gains of $951 million in the same period last year.
"I am pleased that Aflac delivered very solid adjusted earnings for the quarter," said Aflac Chairman and CEO Daniel P. Amos. He highlighted positive trends in Japan, including 93.8% premium persistency and a 12.6% YoY sales increase.
In the U.S. segment, Amos noted a 1.8% increase in net earned premiums and 3.5% growth in sales. "We are encouraged by the momentum we are seeing within all areas of our group business, especially our group life and disability as well as network dental," he added.
The company repurchased $900 million worth of shares during the quarter. Aflac’s board declared a quarterly dividend of $0.58 per share, payable on June 2, 2025.
Despite the revenue miss, Amos emphasized Aflac’s strong capital generation and cash flows, stating the company remains committed to prudent liquidity and capital management while investing in growth and driving long-term operating efficiencies.
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