Berkshire Hathaway's Quarterly Earnings Preview: What You Need to Know

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Berkshire Hathaway Inc. (BRK.B), headquartered in Omaha, Nebraska, is a holding company that owns subsidiaries in a variety of business sectors like insurance, freight, rail, transportation, and utility. 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 first-quarter earnings for 2025 on Friday, May 2.

Ahead of the event, analysts expect BRK.B to report a profit of $4.81 per share on a diluted basis, down 7.3% from $5.19 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect BRK.B to report EPS of $20.13, down 8.5% from $22 in fiscal 2024. Its EPS is expected to rise 7.7% year over year to $21.68 in fiscal 2026. 

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BRK.B stock has outperformed the S&P 500’s ($SPX3.8% gains over the past 52 weeks, with shares up 25.1% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF13.1% gains over the same time frame.

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BRK.B's success can be attributed to its strong performance in various sectors, including insurance, energy, and non-controlled businesses. The company has seen improved results in these areas, as well as increased investment income, thanks to its prudent underwriting standards. With a healthy cash position, BRK.B is expected to continue acquiring new entities to enhance its earnings power. Additionally, the company's expansion into the Japanese market is a promising development. Overall, BRK.B is well-positioned for sustained growth and success.

On Feb. 22, BRK.B reported its Q4 results, and its shares closed up more than 4% in the following trading session. Its operating earnings stood at $14.5 billion, up 71.3% year over year. The company’s EPS declined 47.4% year over year to $9.13. 

Analysts’ consensus opinion on BRK.B stock is reasonably 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 $521, indicating a potential upside of 2.8% from the current levels.


On the date of publication, Neha Panjwani 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.