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Berkshire Hathaway Inc. (BRK.B), headquartered in Omaha, Nebraska, is a holding company that owns subsidiaries in various business sectors, including insurance, freight, rail, transportation, and utilities. With a market cap of $1.1 trillion, Berkshire's other operations include a railway company, a specialty chemical company, and an international association of diversified businesses. The company is expected to announce its fiscal second-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect BRK.B to report a profit of $5.24 per share on a diluted basis, up 1.4% from $5.17 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect BRK.B to report EPS of $20.87, up 1.2% from $20.62 in fiscal 2025. Its EPS is expected to rise 3.6% year over year to $21.63 in fiscal 2027.
BRK.B stock has underperformed the S&P 500 Index’s ($SPX) 18.9% gains over the past 52 weeks, with shares up 2.4% during this period. Similarly, it underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 6.4% gains over the same time frame.
BRK.B underperformed due to investor concerns over the leadership transition from Warren Buffett to Greg Abel, which reduced the historical “Buffett premium” on valuation, while GEICO faced margin pressure from rising bodily injury claims and higher customer acquisition costs, and Berkshire’s value-oriented portfolio with limited tech/AI exposure and large cash reserves lagged the broader market’s growth-led rally.
On May 2, BRK.B reported its Q1 results, and its shares closed down by 1% in the following trading session. Its total revenues stood at $93.7 billion, up 4.4% year over year. The company’s EPS increased 119.7% from the year-ago quarter to $4.68.
Analysts’ consensus opinion on BRK.B stock is moderately bullish, with a “Moderate Buy” rating overall. Out of six analysts covering the stock, two advise a “Strong Buy” rating, and four give a “Hold.” BRK.B’s average analyst price target is $524.80, indicating a potential upside of 7.2% from the current levels.
