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As we dive into the world of Berkshire Hathaway's B shares, it's essential to understand the earnings per share (EPS) metric. The EPS for BRK B has consistently been above $50, with a high of $72.38 in 2020.
Berkshire Hathaway's B shares have a history of delivering strong EPS growth, with a compound annual growth rate (CAGR) of 10.3% over the past five years. This impressive growth is a testament to the company's solid financials and Warren Buffett's investment strategy.
The pre-earnings analysis for BRK B typically involves a review of the company's quarterly and annual financial statements, as well as industry trends and economic indicators. This analysis helps investors anticipate the company's EPS performance.
In the post-earnings review, we can see that BRK B's EPS has consistently beaten analyst expectations, with an average surprise of 15.6% over the past five quarters.
Berkshire Hathaway Key Metrics
Berkshire Hathaway has a Morningstar Rating of 3 stars.
The company's fair value estimate is $640,000 per Class A share and $427 per Class B share.
Berkshire Hathaway has a wide economic moat.
The Morningstar Uncertainty Rating for Berkshire Hathaway is Low.
Here are some key revenue metrics for Berkshire Hathaway:
Berkshire Hathaway's operating revenue, excluding the impact of investment gains/losses and other adjustments, increased 1.2% in the second quarter and 3.2% for the first half of the year.
Berkshire Hathaway's Financials
Berkshire Hathaway reported adjusted operating results that were in line with expectations.
The company's second-quarter operating revenue decreased to $117.5 billion from $125.6 billion in the year-ago period, primarily due to lapping significant unrealized and realized investment gains.
First-half operating revenue increased 3.2% year over year to $93.7 billion, excluding the impact of investment gains/losses and other adjustments.
Earnings Per Share
Berkshire Hathaway's Earnings Per Share remained steady in the second quarter.
The company's adjusted operating results were in line with expectations, leaving the fair value estimates for Class A and Class B shares unchanged.
Berkshire Hathaway's revenue, including investment gains and losses, decreased to $117.5 billion.
However, excluding the impact of investment gains and losses, operating revenue increased 1.2% in the second quarter.
This increase is a positive sign for investors, indicating a solid performance by the company.
The first-half operating revenue increased 3.2% year over year to $93.7 billion.
Earnings Alert
Berkshire Hathaway's Financials are a force to be reckoned with. The company's annual operating earnings have increased from $44.9 billion in 2018 to $51.8 billion in 2020.
Berkshire Hathaway's cash and cash equivalents have grown significantly over the years, reaching $128.2 billion in 2020. This substantial cash reserve gives the company a strong financial foundation.
The company's operating earnings per share have also seen a steady increase, rising from $24.10 in 2018 to $29.70 in 2020. This growth is a testament to the company's solid financial performance.
Berkshire Hathaway's net earnings have been influenced by the company's diverse portfolio of businesses, which includes insurance, retail, and manufacturing operations. The company's ability to adapt to changing market conditions has been a key factor in its financial success.
The company's earnings have been boosted by the strong performance of its insurance segment, which includes GEICO and Gen Re. The insurance segment's underwriting profit has increased from $4.7 billion in 2018 to $6.4 billion in 2020.
Berkshire Hathaway's financials are a reflection of the company's commitment to long-term value creation. The company's focus on generating consistent earnings and building a strong balance sheet has served it well over the years.
Growth and Performance
The growth and performance of BRK B's earnings per share are truly impressive. Over the past 5 years, the company has seen a remarkable 106.27% return.
One of the key drivers of this growth is the company's revenue, which has been steadily increasing over the years. In fact, the 5-Year Revenue Growth stands at a respectable 47.07%.
The company's earnings have also seen a significant boost, with a 5-Year Earnings Growth of 70.95%. This is a testament to the company's ability to generate profits and sustain growth over time.
Here's a breakdown of the company's growth over the past few years:
The company's dividend growth, however, has been stagnant, with a 5-Year Dividend Growth of 0.00%. This might be a concern for investors who rely on dividend income.
Frequently Asked Questions
What is PE ratio for BRK B?
The PE ratio for BRK B (Berkshire Hathaway) is 9.23 as of December 29, 2024. This ratio indicates the stock's value relative to its earnings.
What is the cash per share of BRK B?
As of September 2024, the net cash per share of BRK B is -$89.49. This indicates a significant cash deficit per share, which may impact investor decisions.
Sources
- https://www.morningstar.com/stocks/berkshire-hathaway-earnings-strong-insurance-results-continue-lift-revenue-profitability-2
- https://stocknews.com/news/brk-b-hig-l-hrtg-berkshire-hathaway-brk-b-pre-earnings-analysis/
- https://stocknews.com/news/brk-b-mcy-uve-all-berkshire-hathaway-brk-b-earnings-alert-key-insights-for-investors/
- https://www.barchart.com/stocks/quotes/BRK.B/profile
- https://www.fool.com/investing/2024/12/28/warren-buffett-sell-apple-stock-buy-stock-up-3100/
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