Berkshire Hathaway Inc.
) (BRK.B) reported fourth-quarter 2013 operating earnings of
$1.53 per share, significantly ahead of the Zacks Consensus
Estimate of $1.40.
Earnings also compared favorably with $1.14 per share reported in
the year-ago quarter. Year-over-year earnings growth was
attributable to solid performance from Berkshire's insurance,
energy as well as manufacturing, retail and service businesses.
For the full year 2013, earnings came in at $6.14 per share
higher than the Zacks Consensus Estiamte of $5.84 per share.
Revenues for 2013 escalated 12% year over year to $182.2
billion, led by higher revenues across all business segments -
Insurance, Railroad, Utilities and Energy, and Financial and
Revenues at the
segment increased 6.2% year over year to $41.4 billion, led by
strong performance from Geico, General Re, Berkshire Hathaway
Primary Group, partially offset by lower premiums from Berkshire
Hathaway Reinsurance Group.
Railroad, Utilities and Energy
segment's operating revenues scaled up 6.7% year over year to
$34.7 billion. Of the total segment revenue, approximately 60%
came from Burlington Northern Santa Fe - the railroad company
which was acquired in Feb 2010. An increase in industrial and
agricultural activity has revived the demand for rail services
and this, in turn, translated into greater consumer demand for
the segment. The trend is likely to continue in the coming years
The company expects earnings from MidAmerican to improve $1
billion if the U.S. economy continues to improve in 2014.
Total revenue at the
Manufacturing, Service and Retailing
segment climbed 14.4% year over year to $95.3 billion.
Finance & Financial Products
segment revenues rose 8.2% year over year to $7.1 billion.
Berkshire's cash hoard climbed to $48.2 billion as of Dec 31,
2013 from $47 billion as of Dec 31, 2012. The company is eyeing
more acquisitions after buying NV Energy last year for $5.6
Berkshire Hathaway currently retains a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the same industry such as
American Financial Group Inc.
AmTrust Financial Services, Inc.
) are worth considering. All these stocks sport a Zacks Rank #1
AMER FINL GROUP (AFG): Free Stock Analysis
AMTRUST FIN SVC (AFSI): Free Stock Analysis
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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