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 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 2025 on Friday, Aug. 1. 

Ahead of the event, analysts expect BRK.B to report a profit of $5.24 per share on a diluted basis, down 2.6% from $5.38 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 $20.53, down 6.7% from $22 in fiscal 2024. Its EPS is expected to rise 5% year-over-year to $21.56 in fiscal 2026. 

BRK.B stock has underperformed the S&P 500 Index’s ($SPX) 13.6% gains over the past 52 weeks, with shares up 7.2% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 21.4% gains over the same time frame.

BRK.B's underperformance can be attributed to its Utilities and Energy segment, which, despite being supported by Burlington Northern Santa Fe (BNSF), still faces challenges, including an unfavorable business mix and declining fuel surcharge revenue.

On May 3, BRK.B reported its Q1 results, and its shares closed down more than 5% in the following trading session. Its EPS declined 63.8% year over year to $2.13. The company’s insurance investment income totaled $2.9 billion, representing an 11.4% year-over-year increase. 

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 $537.75, indicating a potential upside of 13.5% from the current levels.