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Why Is Berkshire Hathaway B (BRK.B) Up 5.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Berkshire Hathaway B (BRK.B - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Berkshire Hathaway B due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Berkshire Q1 Earnings Beat, Revenues Rise Y/Y
Berkshire Hathaway delivered first-quarter 2021 operating earnings of $3.05 per share, beating the Zacks Consensus Estimate by 18.2%. The bottom line improved 26.6% year over year.
Behind the Headlines
Revenues increased 5% year over year to $64.6 billion, attributable to higher insurance premiums earned, sales and service revenues, energy operating revenues, as well as Service revenues and other income.
Costs and expenses increased 3.1% year over year to $56 billion, largely due to increase in costs and expenses in Insurance and Other as well as in Railroad, Utilities and Energy.
Operating earnings of $7 billion increased 19.5% year over year. The increase was driven by higher earnings at Insurance, Railroad, Utilities and Energy, as well as Other businesses.
Segment Highlights
Berkshire Hathaway’s Insurance and Other segment revenues increased 2.5% year over year to $17.8 billion in the reported quarter on the back of higher insurance premiums earned. Pretax earnings were $2.4 billion, up 12.8% year over year. The results reflect reduced claims frequencies for private passenger automobile coverages.
Railroad, Utilities and Energy operating revenues increased 14.1% year over year to $11.3 billion. Pretax earnings of $2.3 billion were up 16.9% year over year. The results reflect higher freight volumes and lower costs due to improved productivity at railroad as well as increased earnings from the natural gas pipelines and real estate brokerage businesses, partially offset by lower earnings from the other energy businesses.
Total revenues at Manufacturing, Service and Retailing increased 1% year over year to $35.5 billion. Pretax earnings increased 23.9% year over year to $3.4 billion.
Financial Position
As of Mar 31, 2021, consolidated shareholders’ equity was about $448 billion, up 1.1% from the level as of Dec 31, 2020. At quarter end, cash and cash equivalents were $60 billion, up 25.1% from the level at 2020 end.
The company exited 2020 with a float of about $140 billion, up $2 billion from the figure at year-end 2020.
Cash flow from operating activities totaled $9.3 billion in the reported quarter, up 36.9% from the year-ago quarter.
The company bought back shares worth $6.6 billion in the reported quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Berkshire Hathaway B has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Berkshire Hathaway B has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Berkshire Hathaway B (BRK.B) Up 5.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Berkshire Hathaway B (BRK.B - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Berkshire Hathaway B due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Berkshire Q1 Earnings Beat, Revenues Rise Y/Y
Berkshire Hathaway delivered first-quarter 2021 operating earnings of $3.05 per share, beating the Zacks Consensus Estimate by 18.2%. The bottom line improved 26.6% year over year.
Behind the Headlines
Revenues increased 5% year over year to $64.6 billion, attributable to higher insurance premiums earned, sales and service revenues, energy operating revenues, as well as Service revenues and other income.
Costs and expenses increased 3.1% year over year to $56 billion, largely due to increase in costs and expenses in Insurance and Other as well as in Railroad, Utilities and Energy.
Operating earnings of $7 billion increased 19.5% year over year. The increase was driven by higher earnings at Insurance, Railroad, Utilities and Energy, as well as Other businesses.
Segment Highlights
Berkshire Hathaway’s Insurance and Other segment revenues increased 2.5% year over year to $17.8 billion in the reported quarter on the back of higher insurance premiums earned. Pretax earnings were $2.4 billion, up 12.8% year over year. The results reflect reduced claims frequencies for private passenger automobile coverages.
Railroad, Utilities and Energy operating revenues increased 14.1% year over year to $11.3 billion. Pretax earnings of $2.3 billion were up 16.9% year over year. The results reflect higher freight volumes and lower costs due to improved productivity at railroad as well as increased earnings from the natural gas pipelines and real estate brokerage businesses, partially offset by lower earnings from the other energy businesses.
Total revenues at Manufacturing, Service and Retailing increased 1% year over year to $35.5 billion. Pretax earnings increased 23.9% year over year to $3.4 billion.
Financial Position
As of Mar 31, 2021, consolidated shareholders’ equity was about $448 billion, up 1.1% from the level as of Dec 31, 2020. At quarter end, cash and cash equivalents were $60 billion, up 25.1% from the level at 2020 end.
The company exited 2020 with a float of about $140 billion, up $2 billion from the figure at year-end 2020.
Cash flow from operating activities totaled $9.3 billion in the reported quarter, up 36.9% from the year-ago quarter.
The company bought back shares worth $6.6 billion in the reported quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Berkshire Hathaway B has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Berkshire Hathaway B has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.