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Berkshire Hathaway Inc. (BRK.B - Free Report) reported second-quarter 2016 operating earnings of $1.87 per share that beat the Zacks Consensus Estimate of $1.84. Earnings were down 19% on a year-over-year basis.
Berkshire Hathaway's lower earnings resulted from a decrease in operating earnings from Railroad, Utilities and Energy.
Revenues in the reported quarter came in at $54.5 billion, up 6% year over year.
Segment Results
Berkshire Hathaway’s huge and growing Insurance Operations have kept its underwriting profit streak alive for over 13 years. Insurance Group revenues were $12 billion, up 2.6% year over year on higher contributions from GEICO and Berkshire Hathaway Primary Group. The segment’s operating earnings before tax increased 30.8% year over year to $1.7 billion.
Railroad, Utilities and Energy operating revenues decreased 10.1% year over year to $8.9 billion due to a decline in revenues from the railroad business and soft energy business. Operating earnings of $1.8 billion were down 14.3% year over year, primarily due to a 20% plunge in earnings from the railroad business, partially offset by and a 16.7% increase in earnings from the energy business.
Total revenue at Manufacturing, Service and Retailing grew 9.3% year over year to $30.5 billion. Higher contribution from Industrial products, building products and consumer products drove the upside. Operating earnings increased 11.8% year over year to $2.3 billion.
Revenues at Berkshire Hathaway's Finance & Financial Products – including Clayton Homes (manufactured housing and finance), CORT Business Services (furniture rental), Marmon (rail car and other transportation equipment manufacturing, repair, and leasing), and XTRA (over-the-road trailer leasing) – jumped 11.1% year over year to $2 billion. Operating earnings before tax increased 6% year over year to $583 million.
Financial Position
Consolidated shareholders’ equity as of Jun 30, 2016 was $263 billion, up 2.9% from Dec 31, 2015. Consolidated cash approximated $72.7 billion as of Jun 30, 2016, up 1.4% from the 2015-end level. Cash from operations totaled $15.3 billion, up 10.1% year over year.
As of Jun 30, 2016, Berkshire Hathaway’s book value inched up 2.9% since year-end 2015 to $106.70 per share.
Zacks Rank
Berkshire Hathaway carries a Zacks Rank # 3 (Hold).
The bottom line at The Travelers Companies, Inc. (TRV - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the Zacks Consensus Estimate, while earnings of and RLI Corp. (RLI - Free Report) missed the same in the second quarter.
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Berkshire Hathaway (BRK.B) Q2 Earnings Beat, Plunge Y/Y
Berkshire Hathaway Inc. (BRK.B - Free Report) reported second-quarter 2016 operating earnings of $1.87 per share that beat the Zacks Consensus Estimate of $1.84. Earnings were down 19% on a year-over-year basis.
Berkshire Hathaway's lower earnings resulted from a decrease in operating earnings from Railroad, Utilities and Energy.
Revenues in the reported quarter came in at $54.5 billion, up 6% year over year.
Segment Results
Berkshire Hathaway’s huge and growing Insurance Operations have kept its underwriting profit streak alive for over 13 years. Insurance Group revenues were $12 billion, up 2.6% year over year on higher contributions from GEICO and Berkshire Hathaway Primary Group. The segment’s operating earnings before tax increased 30.8% year over year to $1.7 billion.
Railroad, Utilities and Energy operating revenues decreased 10.1% year over year to $8.9 billion due to a decline in revenues from the railroad business and soft energy business. Operating earnings of $1.8 billion were down 14.3% year over year, primarily due to a 20% plunge in earnings from the railroad business, partially offset by and a 16.7% increase in earnings from the energy business.
Total revenue at Manufacturing, Service and Retailing grew 9.3% year over year to $30.5 billion. Higher contribution from Industrial products, building products and consumer products drove the upside. Operating earnings increased 11.8% year over year to $2.3 billion.
Revenues at Berkshire Hathaway's Finance & Financial Products – including Clayton Homes (manufactured housing and finance), CORT Business Services (furniture rental), Marmon (rail car and other transportation equipment manufacturing, repair, and leasing), and XTRA (over-the-road trailer leasing) – jumped 11.1% year over year to $2 billion. Operating earnings before tax increased 6% year over year to $583 million.
Financial Position
Consolidated shareholders’ equity as of Jun 30, 2016 was $263 billion, up 2.9% from Dec 31, 2015. Consolidated cash approximated $72.7 billion as of Jun 30, 2016, up 1.4% from the 2015-end level. Cash from operations totaled $15.3 billion, up 10.1% year over year.
As of Jun 30, 2016, Berkshire Hathaway’s book value inched up 2.9% since year-end 2015 to $106.70 per share.
Zacks Rank
Berkshire Hathaway carries a Zacks Rank # 3 (Hold).
BERKSHIRE HTH-B Price, Consensus and EPS Surprise
BERKSHIRE HTH-B Price, Consensus and EPS Surprise | BERKSHIRE HTH-B Quote
Performance of Other P&C Insurers
The bottom line at The Travelers Companies, Inc. (TRV - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the Zacks Consensus Estimate, while earnings of and RLI Corp. (RLI - Free Report) missed the same in the second quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>