We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Berkshire Hathaway B (BRK.B) Up 3.6% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Berkshire Hathaway B (BRK.B - Free Report) . Shares have added about 3.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Berkshire Hathaway delivered second-quarter 2023 operating earnings of $10 billion, which increased 6.6% year over year. The increase was driven by higher earnings insurance underwriting, insurance-investment income, other businesses, and non-controlled businesses.
Behind the Headlines
Revenues increased 21.4% year over year to $92.5 billion, attributable to higher revenues at Insurance and Other, as well as Railroad, Utilities and Energy.
Costs and expenses increased 24.4% year over year to $80.6 billion, largely due to an increase in insurance losses and loss adjustment expenses, insurance underwriting expenses, selling, general and administrative expenses, utilities and energy cost of sales and other expenses, and interest expenses. The figure was lower than our estimate of $66.3 billion.
Segment Performance
Berkshire Hathaway’s Insurance and Other segment revenues increased 4% year over year to $65.6 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting earnings increased 76% year over year.
Railroad, Utilities and Energy operating revenues doubled year over year to $26.8 billion, attributable to higher utility and energy operating revenues. The figure was higher than our estimate of 13.5 billion. Pre-tax earnings of Railroad decreased 24.9% year over year to $1.6 billion.
Operating earnings from the Railroad business decreased 23.7% year over year.
Total revenues at Manufacturing, Service and Retailing decreased 1.2% year over year to $42.1 billion. Pre-tax earnings increased 4.4% year over year to $4.5 billion.
Earnings from Manufacturing, Service and Retailing businesses increased 4.3% year over year.
Financial Position
As of Jun 30, 2023, consolidated shareholders’ equity was $548.5 billion, up 13.9% from the level as of Dec 31, 2022. At quarter-end, cash and cash equivalents were $44.6 billion, up 38.2% from the level at 2022 end.
Berkshire Hathaway exited the second quarter of 2023 with a float of about $166 billion, up from $164 billion from the figure at year-end 2022.
Cash flow from operating activities totaled $21.1 billion in the reported quarter, up 37.5% from the year-ago period.
The company bought back shares worth $5.8 billion in the first half of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Berkshire Hathaway B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Berkshire Hathaway B is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Arch Capital Group (ACGL - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2023 more than a month ago.
Arch Capital reported revenues of $3.21 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $1.92 for the same period compares with $1.34 a year ago.
Arch Capital is expected to post earnings of $1.29 per share for the current quarter, representing a year-over-year change of +360.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Arch Capital. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Berkshire Hathaway B (BRK.B) Up 3.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Berkshire Hathaway B (BRK.B - Free Report) . Shares have added about 3.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Berkshire Q2 Earnings Rise Y/Y, Segment Results Solid
Berkshire Hathaway delivered second-quarter 2023 operating earnings of $10 billion, which increased 6.6% year over year. The increase was driven by higher earnings insurance underwriting, insurance-investment income, other businesses, and non-controlled businesses.
Behind the Headlines
Revenues increased 21.4% year over year to $92.5 billion, attributable to higher revenues at Insurance and Other, as well as Railroad, Utilities and Energy.
Costs and expenses increased 24.4% year over year to $80.6 billion, largely due to an increase in insurance losses and loss adjustment expenses, insurance underwriting expenses, selling, general and administrative expenses, utilities and energy cost of sales and other expenses, and interest expenses. The figure was lower than our estimate of $66.3 billion.
Segment Performance
Berkshire Hathaway’s Insurance and Other segment revenues increased 4% year over year to $65.6 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting earnings increased 76% year over year.
Railroad, Utilities and Energy operating revenues doubled year over year to $26.8 billion, attributable to higher utility and energy operating revenues. The figure was higher than our estimate of 13.5 billion. Pre-tax earnings of Railroad decreased 24.9% year over year to $1.6 billion.
Operating earnings from the Railroad business decreased 23.7% year over year.
Total revenues at Manufacturing, Service and Retailing decreased 1.2% year over year to $42.1 billion. Pre-tax earnings increased 4.4% year over year to $4.5 billion.
Earnings from Manufacturing, Service and Retailing businesses increased 4.3% year over year.
Financial Position
As of Jun 30, 2023, consolidated shareholders’ equity was $548.5 billion, up 13.9% from the level as of Dec 31, 2022. At quarter-end, cash and cash equivalents were $44.6 billion, up 38.2% from the level at 2022 end.
Berkshire Hathaway exited the second quarter of 2023 with a float of about $166 billion, up from $164 billion from the figure at year-end 2022.
Cash flow from operating activities totaled $21.1 billion in the reported quarter, up 37.5% from the year-ago period.
The company bought back shares worth $5.8 billion in the first half of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Berkshire Hathaway B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Berkshire Hathaway B is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Arch Capital Group (ACGL - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2023 more than a month ago.
Arch Capital reported revenues of $3.21 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $1.92 for the same period compares with $1.34 a year ago.
Arch Capital is expected to post earnings of $1.29 per share for the current quarter, representing a year-over-year change of +360.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Arch Capital. Also, the stock has a VGM Score of C.