A month has gone by since the last earnings report for Berkshire Hathaway B (BRK.B Quick QuoteBRK.B - Free Report) . Shares have added about 12.4% 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 drivers.

Berkshire Q4 Earnings Up on Strong Segment Results

Berkshire Hathaway delivered fourth-quarter 2021 operating earnings of $7.3 billion that increased 45.1% year over year. The increase was driven by higher earnings at Railroad, Utilities and Energy, and other businesses.

Improved performance in Insurance and Other, Railroad, Utilities and Energy as well as Manufacturing, Service and Retailing resulted in the upside.

Operating earnings at Railroad, Utilities and Energy increased 12.3% year over year to about $2.2 billion.

Full-Year Highlights

For 2021, operating earnings of $27.4 billion increased 25.2% year over year.

Revenues increased 12.4% year over year to $276 billion, attributable to higher insurance premiums earned, sales and service revenues, leasing revenues, freight rail transportation revenues, energy operating revenues, service revenues and other income.

Costs and expenses increased 5.5% year over year to $243.9 billion, largely due to an increase in costs and expenses in Insurance and Other and Railroad, Utilities and Energy.

Berkshire Hathaway’s Insurance and Other segment revenues increased 11.9% year over year to $227.9 billion in 2021 on the back of higher insurance premiums earned, sales and service revenues and leasing revenues.

Railroad, Utilities and Energy operating revenues increased about 15.2% year over year to $48.1 billion. Pre-tax earnings of Railroad increased 15.7% year over year to $7.9 billion. Pre-tax earnings of Utilities and Energy increased 28.4% year over year to $3.2 billion. Railroad, utilities and energy operating earnings increased 14.9% year over year to $9.5 billion.

Total revenues at Manufacturing, Service and Retailing increased 14.1% year over year to $153 billion. Pre-tax earnings increased 33.6% year over year to $14.5 billion.

Financial Position

As of Dec 31, 2021, consolidated shareholders’ equity was $514.9 billion, up 14.1% from the level as of Dec 31, 2020. At quarter-end, cash and cash equivalents were $88.7 billion, up 83.3% from the level at 2020 end.

The company exited 2021 with a float of about $147 billion, up $9 billion from the figure at year-end 2020.

Cash flow from operating activities totaled $39.4 billion in 2021, down 0.9% from the year-ago period.

Berkshire Hathaway bought back shares worth $27.1 billion in 2021.

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 subpar Growth Score of D, a grade with the same score on the momentum front. 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 F. 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.