Earnings Preview: Aflac Inc. (AFL)

Aflac Inc. AFL is currently lower on the session by 0.57%, trading at $50.75. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q2 earnings per share of $1.33 on revenue of $4.99 billion. These estimates have remained the same over the past 90 days. The Whisper number for LVS is $1.40. • Guidance The Street is looking for Q3 EPS of $1.37 on revenue of $5.08 billion. The full year 2010 estimates are $5.45 per share on revenue of $20.36 billion; FY 2011 is at $5.96 per share on revenues of $20.90 billion. • Technical Picture AFL has been rallying since the beginning of the year, off of a base near $35.50; compared to today’s trade price, that is a 43% rally over that time period. Recently, the stock is recovering from a sharp correction, where AFL crashed from $56.50, down near $40.00. Over the past eight weeks, though, bulls have returned and all indications point higher. The stock is currently trading above both the 50-day and 200-day moving averages; recently the Bollinger Bands have tilted higher as well. This does mean that AFL needs to put up a strong number to hold current levels, though. • Volatility Both historical volatility and implied volatility have been down-trending over the past three months after a spike higher in mid-May. Currently HI is at 47% and IV is at 37%. The front month $50.00 straddle is trading at 39.45%; the September $50.00 straddle is trading at 36.53% Aflac Incorporated is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries. Its principal business is supplemental health and life insurance, through its subsidiary, American Family Life Assurance Company of Columbus, which operates in the United States and as a branch in Japan. Aflac's business consists of two segments: Aflac Japan and Aflac U.S.