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What's in the Cards for Berkshire (BRK.B) in Q2 Earnings?
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Berkshire Hathaway Inc. (BRK.B - Free Report) is expected to report second-quarter 2022 earnings soon. BRK.B delivered an earnings surprise in three of the last four quarters, the average being 11.01%.
The Zacks Consensus Estimate for the second quarter of 2022 is pegged at $3.00 per share, indicating an increase of 2% from the year-ago quarter reported figure.
Factors to Consider
Berkshire Hathaway’s net new business, increased participation on renewals, improved pricing and favorable foreign currency translation effects may have aided premium revenues.
Per Marsh, global commercial insurance prices in the second quarter of 2022 grew 9%. The pace of rate increases slowed for the sixth consecutive quarter since global pricing increases peaked at 22% in the fourth quarter of 2020. Pricing in financial and professional lines, mostly driven by cyber, had the highest rate of increase across the major insurance product categories, at 16%.
Continued insurance business growth is expected to have increased float.
An increase in freight volumes and lower costs due to improved productivity are likely to have benefited the railroad business.
The Utilities and energy business is expected to have benefited from higher earnings from the natural gas pipelines, including the effects of a business acquisition, and the real estate brokerage businesses.
Manufacturing, service and retailing businesses are expected to have benefited from higher customer demand in many businesses.
Strategic buyouts are likely to have boosted the company’s performance.
Expenses are expected to have increased on higher insurance losses and loss adjustment expenses, health insurance benefits, insurance underwriting expenses, cost of sales and services, interest expense, freight rail transportation expenses, utilities and energy cost of sales and other expenses, other expenses as well as higher interest expense.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Berkshire Hathaway this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case as you can see below.
Earnings 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 $3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks from the finance sector with the right combination of elements to come up with an earnings beat this time around are:
Atlas Corp. has an Earnings ESP of +9.72% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 36 cents, indicating a decrease of 7.7% from the year-ago reported figure.
ATCO’s earnings beat estimates in two of the last four quarters and missed in the other two.
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of + 52.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings indicates a decrease of 147.3% from the year-ago reported figure.
COIN’s earnings beat estimates in two of the last four quarters and missed in the other two.
National Bankshares, Inc. (NKSH - Free Report) has an Earnings ESP of +7.51% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 87 cents, indicating an increase of 17.6% from the year-ago reported figure.
NKSH’s earnings beat estimates in two of the last four quarters and missed in the other two.
Image: Bigstock
What's in the Cards for Berkshire (BRK.B) in Q2 Earnings?
Berkshire Hathaway Inc. (BRK.B - Free Report) is expected to report second-quarter 2022 earnings soon. BRK.B delivered an earnings surprise in three of the last four quarters, the average being 11.01%.
The Zacks Consensus Estimate for the second quarter of 2022 is pegged at $3.00 per share, indicating an increase of 2% from the year-ago quarter reported figure.
Factors to Consider
Berkshire Hathaway’s net new business, increased participation on renewals, improved pricing and favorable foreign currency translation effects may have aided premium revenues.
Per Marsh, global commercial insurance prices in the second quarter of 2022 grew 9%. The pace of rate increases slowed for the sixth consecutive quarter since global pricing increases peaked at 22% in the fourth quarter of 2020. Pricing in financial and professional lines, mostly driven by cyber, had the highest rate of increase across the major insurance product categories, at 16%.
Continued insurance business growth is expected to have increased float.
An increase in freight volumes and lower costs due to improved productivity are likely to have benefited the railroad business.
The Utilities and energy business is expected to have benefited from higher earnings from the natural gas pipelines, including the effects of a business acquisition, and the real estate brokerage businesses.
Manufacturing, service and retailing businesses are expected to have benefited from higher customer demand in many businesses.
Strategic buyouts are likely to have boosted the company’s performance.
Expenses are expected to have increased on higher insurance losses and loss adjustment expenses, health insurance benefits, insurance underwriting expenses, cost of sales and services, interest expense, freight rail transportation expenses, utilities and energy cost of sales and other expenses, other expenses as well as higher interest expense.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Berkshire Hathaway this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case as you can see below.
Earnings 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 $3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Berkshire Hathaway Inc. Price and EPS Surprise
Berkshire Hathaway Inc. price-eps-surprise | Berkshire Hathaway Inc. Quote
Zacks Rank: Berkshire Hathaway currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks from the finance sector with the right combination of elements to come up with an earnings beat this time around are:
Atlas Corp. has an Earnings ESP of +9.72% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 36 cents, indicating a decrease of 7.7% from the year-ago reported figure.
ATCO’s earnings beat estimates in two of the last four quarters and missed in the other two.
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of + 52.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings indicates a decrease of 147.3% from the year-ago reported figure.
COIN’s earnings beat estimates in two of the last four quarters and missed in the other two.
National Bankshares, Inc. (NKSH - Free Report) has an Earnings ESP of +7.51% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 87 cents, indicating an increase of 17.6% from the year-ago reported figure.
NKSH’s earnings beat estimates in two of the last four quarters and missed in the other two.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.