Berkshire Hathaway Inc. (BRK.B - Free Report) is expected to report third-quarter 2016 results on Nov 4, after the market closes. Last quarter, this company delivered a 1.63% positive earnings surprise. Let’s see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
Berkshire Hathaway’s strategic acquisitions should have a positive impact on the operational results.
The utilities and energy, manufacturing, service and retail, as well as finance and financial products segments are expected to continue delivering solid results. This in turn should drive improvement in the top line.
Better revenues from the railway business – Burlington Northern SantaFe Corp – alongside outperformance by the Manufacturing, Service and Retail segments will likely lead to overall top-line growth.
However, Berkshire Hathaway incurred high expenses due to rail road operations in the quarter. This is likely to weigh on margin expansion.
With respect to the surprise trend, Berkshire Hathaway beat expectations in two of the last four quarters, but with an average miss of 1.54%.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Berkshire Hathaway will beat the Zacks Consensus Estimate in the quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Berkshire Hathaway has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.88.
Zacks Rank: Berkshire Hathaway has a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
AerCap Holdings N.V.
(AER - Free Report) , which is slated to report third-quarter earnings results on Nov 8, has an Earnings ESP of +2.82% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ares Management, L.P. (ARES - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2. The company is slated to report third-quarter earnings results on Nov 7.
Banco Santander (Brasil) S.A. (BSBR - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3. The company is slated to report third-quarter earnings results on Nov 8.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Berkshire Hathaway Inc. (BRK.B - Free Report) is expected to report third-quarter 2016 results on Nov 4, after the market closes. Last quarter, this company delivered a 1.63% positive earnings surprise. Let’s see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
Berkshire Hathaway’s strategic acquisitions should have a positive impact on the operational results.
The utilities and energy, manufacturing, service and retail, as well as finance and financial products segments are expected to continue delivering solid results. This in turn should drive improvement in the top line.
Better revenues from the railway business – Burlington Northern SantaFe Corp – alongside outperformance by the Manufacturing, Service and Retail segments will likely lead to overall top-line growth.
However, Berkshire Hathaway incurred high expenses due to rail road operations in the quarter. This is likely to weigh on margin expansion.
With respect to the surprise trend, Berkshire Hathaway beat expectations in two of the last four quarters, but with an average miss of 1.54%.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Berkshire Hathaway will beat the Zacks Consensus Estimate in the quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Berkshire Hathaway has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.88.
Zacks Rank: Berkshire Hathaway has a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
AerCap Holdings N.V.
(AER - Free Report) , which is slated to report third-quarter earnings results on Nov 8, has an Earnings ESP of +2.82% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Ares Management, L.P. (ARES - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2. The company is slated to report third-quarter earnings results on Nov 7.
Banco Santander (Brasil) S.A. (BSBR - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3. The company is slated to report third-quarter earnings results on Nov 8.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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