Sterne Agee Comments On Aflac Guidance

According to Sterne Agee, Aflac AFL CEO Amos reaffirmed AFL's guidance for 2011 of 8% EPS growth in constant currency (range removed) and provided initial outlook for 2012 of 0-5% EPS growth, also in constant currency. Sterne Agee said that against the current 2011E EPS of $6.30, this implies a range of $6.30-$6.62, with midpoint of $6.46 vs the 2012E of $6.60. “In light of the devastating events in Japan, AFL provided an interim look at 2Q sales. Through the first six weeks of the quarter, AFL Japan sales were flat YoY, which we view as a positive development. The company's internal budget before the quake was that 2Q11 would be +4% YoY. In the U.S., sales were also flat YoY in the first six weeks, adjusted for the number of selling days in both the current and year-ago period. Management reiterated its outlook for -2 to +3% growth in Japan and 0-5% growth in the U.S. in 2011.” Aflac closed yesterday at $53.85.