Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter operating earnings of $6.1 billion, which decreased 10.9% year over year.
This decline was mainly due to weak insurance business results.
Behind the Headlines
Revenues increased 2.2% year over year to $60.7 billion.
Costs and expenses increased 4.1% year over year to $56 billion.
Pre-tax income came in at $17.8 billion, up 17.6% year over year.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Segment Results
Berkshire Hathaway’s huge and growing Insurance Operations segment has kept its underwriting profit streak alive for more than 15 years. Revenues from the Insurance group increased 6.2% year over year to $16.5 billion. This segment’s net earnings attributable to Berkshire Hathaway were $1.719 billion, down 17.6% year over year.
Railroad, Utilities and Energy operating revenues decreased 1.1% year over year to $10.9 billion owing to higher contribution from Burlington Northern SantaFe Corp. (BNSF). Net earnings of $1.9 billion were up 2.9% year over year on 2.2% increase from railroad business as well as a 4.5% increase from the utilities and energy business.
Total revenues at Manufacturing, Service and Retailing rose 1.2% year over year to $36.1 billion. Net earnings grew marginally year over year to $2.5 billion.
Financial Position
As of Jun 30, 2019, consolidated shareholders’ equity was $386.4 billion, up 9.6% from the level as of Dec 31, 2018. At quarter-end, cash and cash equivalents were $44.6 billion, up 47% from the level at 2018 end.
Berkshire’s debt was $99.907 billion as on Jun 30, 2019, a 2.5% increase since Dec 31, 2018.
The company exited the second quarter with a float of about $125 billion, up $2 billion from year-end 2018.
Cash flow from operating activities totaled $16.8 billion, up 4.2% year over year.
Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
Second-quarter earnings of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate while that of The Travelers Companies (TRV - Free Report) missed expectations.
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Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter operating earnings of $6.1 billion, which decreased 10.9% year over year.
This decline was mainly due to weak insurance business results.
Behind the Headlines
Revenues increased 2.2% year over year to $60.7 billion.
Costs and expenses increased 4.1% year over year to $56 billion.
Pre-tax income came in at $17.8 billion, up 17.6% year over year.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Segment Results
Berkshire Hathaway’s huge and growing Insurance Operations segment has kept its underwriting profit streak alive for more than 15 years. Revenues from the Insurance group increased 6.2% year over year to $16.5 billion. This segment’s net earnings attributable to Berkshire Hathaway were $1.719 billion, down 17.6% year over year.
Railroad, Utilities and Energy operating revenues decreased 1.1% year over year to $10.9 billion owing to higher contribution from Burlington Northern SantaFe Corp. (BNSF). Net earnings of $1.9 billion were up 2.9% year over year on 2.2% increase from railroad business as well as a 4.5% increase from the utilities and energy business.
Total revenues at Manufacturing, Service and Retailing rose 1.2% year over year to $36.1 billion. Net earnings grew marginally year over year to $2.5 billion.
Financial Position
As of Jun 30, 2019, consolidated shareholders’ equity was $386.4 billion, up 9.6% from the level as of Dec 31, 2018. At quarter-end, cash and cash equivalents were $44.6 billion, up 47% from the level at 2018 end.
Berkshire’s debt was $99.907 billion as on Jun 30, 2019, a 2.5% increase since Dec 31, 2018.
The company exited the second quarter with a float of about $125 billion, up $2 billion from year-end 2018.
Cash flow from operating activities totaled $16.8 billion, up 4.2% year over year.
Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
Second-quarter earnings of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate while that of The Travelers Companies (TRV - Free Report) missed expectations.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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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