On June 7, 2013, shares of Berkshire Hathaway Inc. (
) hit a 52-week high of $115.32. The momentum was driven by the
recently closed acquisition of H.J. Heinz Co., the agreement to
acquire NV Energy and strong first quarter earnings.
On May 3, 2013, Berkshire Hathaway reported first quarter 2013
operating earnings of $1.53 per share, higher than the Zacks
Consensus Estimate of $1.30 per share as well as year-ago
earnings of $1.08 per share.
Earnings outperformance was driven by higher contribution from
insurance, railroad utility and energy segment as well as
manufacturing , servicing and retailing segments.
Last week the company completed the acquisition of H.J. Heinz
Company. Berkshire is expected to benefit from Heinz's
robust global portfolio of leading brands, which focuses on three
attractive and growing food categories: ketchup and sauces, meals
and snacks, and infant/nutrition. Also Heinz has a strong market
position where it is consistently delivering solid organic
growth, showing continued and strong improvement in the emerging
markets, making robust marketing investments, continuously
innovating and reducing expenses aggressively.
Last month Berkshire also announced acquisition of NV Energy
Inc. The deal will be a strategic fit for Berkshire which already
derives 22% of revenue from energy business. The deal is expected
to see light in the first quarter of 2014. Berkshire's huge cash
holding of $48 billion will fund the acquisition.
The deal will enable Berkshire to serve nearly 1.3 million
electric and natural gas customers in Nevada. MidAmerican already
serves 7.1 million Americans across 10 states. Berkshire bought
MidAmerican in 2000.
Berkshire Hathaway retains a Zacks Rank #2 (Buy). Other
players from the same industry such as
Hanover Insurance Group Inc.
), State Auto Financial Corp. (
) carrying Zacks Rank #1(Strong Buy) are worth considering.
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
STATE AUTO FINL (STFC): Free Stock Analysis
HANOVER INSURAN (THG): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
To read this article on Zacks.com click here.