Berkshire Misses Q3 Earnings - Analyst Blog


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Berkshire Hathaway Inc. ( BRK.A ) ( BRK.B ) reported third quarter 2013 operating earnings of $1.49 per share, missing the Zacks Consensus estimate of $1.60 per share. 

Earnings, however, compared favorably with $1.37 per share reported in the year-ago quarter. The year-over-year earnings growth came from solid performance from Berkshire's insurance, energy as well as manufacturing, retail and service businesses. 

Net income (a GAAP measure), which includes investment and derivative gains came in at $2.05 per share, up from $1.58 per share earned in the year-ago quarter. 

Total revenue surged 13% year over year to $46.5 billion led by higher revenues across all business segments - Insurance, railroad, Utilities and energy as well as Financial and Financial products.

Segment Results

The Insurance Group segment revenue grew up 6.1% year over year to $10.4 billion, led by strong performance from Geico.  

The Railroad, Utilities and Energy segment's operating revenue increased 7.1% year over year to $9.0 billion. Of the total segment revenue, approximately 64% came from Burlington Northern Santa Fe, the railroad company, which was acquired in February 2010. An increase in industrial and agricultural activity has automatically revived the demand for rail services and this translates into greater consumer demand for the segment. The trend is likely to continue in the coming years as well. 

Total revenue of the Manufacturing, Service and Retailing segment climbed 14.5% year over year to $24.0 billion.

The Finance & Financial Products segment contributed $160 million in operating earnings up 48% year over year.  Revenues increased 7.2% year over year to $1.1 billion.  

Consolidated shareholders' equity at Sep 30, 2013 was $208.4 billion, an increase of $207 billion since Dec 31, 2012.

Berkshire Hathaway retains a Zacks Rank #4 (Sell). 

Other players Cincinnati Financial Corp. ( CINF ), CNA Financial Corp. ( CNA ) both with Zack Rank #1 (Strong Buy) and Chubb Corp. ( CB ) Zack Rank #2 (Buy), all reported third quarter earnings ahead of the Zacks Consensus Estimate.

BERKSHIRE HTH-A (BRK.A): Free Stock Analysis Report

BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report

CHUBB CORP (CB): Free Stock Analysis Report

CINCINNATI FINL (CINF): Free Stock Analysis Report

CNA FINL CORP (CNA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: CB , CINF , CNA

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