Berkshire Hathaway: A Mixed Bag as Third-Quarter Earnings Disappoint
Berkshire Hathaway Inc. (BRK.B), recognized for its wide-ranging investments and notable market cap of $1 trillion, is steered by the iconic Warren Buffett. This conglomerate, based in Omaha, Nebraska, is involved in various sectors such as insurance (notably GEICO and General Re), railroads (BNSF Railway), energy (Berkshire Hathaway Energy), and manufacturing/retail (including Duracell and See’s Candies).
Performance Comparison: Berkshire Hathaway vs. Major Indices
Despite its impressive stature, shares of BRK.B have slightly lagged behind the market over the past year. The stock climbed 21.2%, while the S&P 500 Index ($SPX) saw a 22.8% increase. However, in 2025, BRK.B made a comeback, outperforming the SPX with a 5.3% gain compared to the SPX’s 3.4% returns year-to-date.
Yearly Performance in Context
When focusing on specific sectors, BRK.B has underperformed when compared to the iShares U.S. Financial Services ETF (IYG). This ETF gained 38.9% over the past year and saw an 8.8% increase year-to-date.
Mixed Q3 Results Prompt Reaction from Investors
On November 2, Berkshire Hathaway announced its third-quarter earnings, which resulted in a 2.2% decline in share prices. The company reported operating earnings of $10.1 billion, representing a 6.2% decrease from the same period last year, largely due to rising costs and lower revenues. Investors were also disappointed by the Railroad, Utilities, and Energy segment, which saw a notable 9.1% drop in operating revenues to $23.9 billion, missing market expectations.
Future Earnings Projections and Analyst Ratings
Looking ahead to FY2024, which concludes in December 2024, analysts predict BRK.B will achieve an EPS growth of 15.1%, reaching $19.78 on a diluted basis. Historically, the company’s earnings surprises have been mixed, beating consensus estimates in three out of the last four quarters while missing once.
The consensus rating among the six analysts covering BRK.B stock stands at a “Moderate Buy,” which includes two “Strong Buy” ratings and four “Holds.” This consensus has remained steady over the last three months.
Insights from Analysts
On November 4, Brian Meredith, an analyst from UBS Group AG (UBS), confirmed a “Buy” rating for Berkshire Hathaway, albeit with a slight adjustment to the price target from $538 to $531. The average price target now stands at $497.75, translating to a 4.3% premium over BRK.B’s current price. The highest price target of $536 implies a potential upside of 12.3%.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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