We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 >>