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Berkshire (BRK.B) to Report Q3 Earnings: What's in Store?

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Berkshire Hathaway Inc. (BRK.B - Free Report) is expected to report third-quarter 2023 earnings soon. BRK.B delivered an earnings surprise in two of the last four quarters and missed in the other two, the average beat being 2.51%.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.74 per share, indicating an increase of 34.2% from the year-ago quarter’s reported figure.

Factors to Consider

Berkshire Hathaway’s higher average premiums per auto policy due to rate increases, net improvement from new property business and rates might have aided premium revenues. The upside is likely to have been partly offset by a decrease in policies in-force and unfavorable foreign currency translation effects.

Per MarketScout, commercial insurance rates increased 3.72% during the third quarter of 2023. The composite rate for personal lines across the United States was 4% for the third quarter of 2023, according to MarketScout. Per the report, rates for most lines of business moderated in the third quarter, except for business owners policies.

Continued insurance business growth is expected to have increased float. Higher average revenue per car per unit and improved fuel prices, along with increased rates per car per unit, are likely to have benefited the railroad business. The increase is likely to have been partly offset by lower overall freight volumes.

The Utilities and energy business is expected to have benefited from higher earnings from other energy businesses, including tax equity investments and Northern Powergrid businesses, as well as from the natural gas pipeline businesses. The increase is likely to have been partly offset by lower earnings from the real estate brokerage business.

Manufacturing, service and retailing businesses are expected to have benefited from higher customer demand for products and services in many businesses.

Strategic acquisitions are likely to have boosted the insurer’s performance.

Expenses are expected to have increased on higher insurance losses and loss adjustment expenses, cost of sales and services, cost of leasing, interest expense, freight rail transportation expenses, utilities and energy cost of sales and other expenses.

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 $4.74. 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 and EPS Surprise

Berkshire Hathaway Inc. price-eps-surprise | Berkshire Hathaway Inc. Quote

Zacks Rank: Berkshire Hathaway currently carries a Zacks Rank of 3.

Stocks to Consider

Some stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:

Hamilton Lane Inc. (HLNE - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank of 3. The Zacks Consensus Estimate for HLNE’s third-quarter 2023 earnings is pegged at 95 cents per share, indicating a decline of 6.8% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

HLNE’s earnings beat estimates in three of the last four quarters and missed in the one.

American Equity Investment Life Holding Company currently has an Earnings ESP of +1.44% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.67, indicating an increase of 68.6% from the year-ago reported figure.

AEL’s earnings beat estimates in two of the four reported quarters and missed in the other two.

Brighthouse Financial, Inc. (BHF - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $4.03, indicating an increase of 10,175% from the year-ago reported figure.

BHF’s earnings beat estimates in two of the four reported quarters and missed in the other two.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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