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Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK.B) provides various services including property and casualty insurance and reinsurance, utilities, freight rail transportation, retailing, and more. With a market cap of $1 trillion, Berkshire Hathaway’s operations span the Americas, Indo-Pacific, Europe, and internationally. It is expected to release its Q3 earnings on Friday, Nov. 1.
Ahead of the event, analysts expect Berkshire Hathaway to report a profit of $4.57 per share, down 7.9% from $4.96 per share reported in the year-ago quarter. However, the company has surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 17.9% year-over-year to $5.38, exceeding the consensus estimates by 11.4%.
For fiscal 2024, analysts expect Berkshire Hathaway to report an adjusted EPS of $19.72, up 14.8% from $17.18 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 1.4% year-over-year to $19.99.
BRK.B has gained 30.6% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 22.5% gains and the Financial Select Sector SPDR Fund’s (XLF) 26.3% returns during the same time frame.
Shares of Berkshire Hathaway dipped 3.4% in the trading session after the release of its Q2 earnings on Aug. 3 buoying the dip in net income. The company reported a staggering 27.8% year-over-year decline in investment gains to $23.9 billion, leading to a 15.5% decline in net income to shareholders, falling to $30.3 billion. However, the company reported a 1.2% growth in revenues, reaching $93.7 billion, driven by growth in insurance and other revenues. It also reported a 1.3% decline in total costs and expenses, falling to $79.6 billion.
Moreover, the company reported a substantial growth in its EPS adjusted for non-recurring items. Following the initial dip in prices, BRK.B rebounded 2% in the next trading session and maintained a positive momentum for three subsequent trading sessions.
The consensus opinion on BRK.B stock is moderately bullish, with an overall “Moderate Buy” rating. Of the six analysts covering the stock, two recommend “Strong Buy,” and four advise a “Hold” rating. The mean price target of $471.50 suggests a potential upside of 1.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
