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Berkshire (BRK.B) Q3 Earnings Up on Solid Segment Results

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  • BRK-B
  • CINF

Berkshire Hathaway Inc. (BRK.B) delivered third-quarter 2021 operating earnings of $6.5 billion that increased 18% year over year.

Improved performance in Insurance and Other, Railroad, Utilities and Energy as well as Manufacturing, Service and Retailing resulted in the upside.

Berkshire Hathaway Inc. Price, Consensus and EPS Surprise

Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise

Berkshire Hathaway Inc. price-consensus-eps-surprise-chart | Berkshire Hathaway Inc. Quote

Behind the Headlines

Revenues increased 12% year over year to $70.6 billion, attributable to higher revenues from Insurance and Other operations as well as Railroad, Utilities and Energy.

Costs and expenses increased 11.3% year over year to $63.4 billion, largely due to an increase in costs and expenses in Railroad, Utilities and Energy and Insurance and Other.

Segment Results

Berkshire Hathaway’s Insurance and Other segment revenues increased 11.9% year over year to $57.8 billion in the third quarter of 2021 on the back of higher insurance premiums earned, sales and service revenues, leasing revenues, interest, dividend and other investment income.

Railroad, Utilities and Energy operating revenues increased 12.3% year over year to $12.8 billion due to an increase in freight rail transportation revenues, energy operating revenues, service revenues and other income. Pre-tax earnings of Railroad increased 14.2% year over year to $2 billion. Pre-tax earnings of Utilities and Energy increased 22.5% year over year to $1.4 billion.

Total revenues at Manufacturing, Service and Retailing increased 12.5% year over year to $38.8 billion. Pretax earnings increased 13.3% year over year to $3.5 billion.

Financial Position

As of Sep 30, 2021, consolidated shareholders’ equity was $472.5 billion, up 6.6% from the level as of Dec 31, 2020. At quarter-end, cash and cash equivalents were $69.9 billion, down 45.8% from the level at 2020 end.

The company exited the third quarter of 2021 with a float of about $145 billion, up $7 billion from the figure at year-end 2020.

Cash flow from operating activities totaled $31.6 billion in the first nine months of 2021, up 8.2% from the year-ago period.

The company bought back shares worth $20.2 billion in the first nine months of 2021.

Zacks Rank

Berkshire Hathaway currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other P&C Insurers

Of the insurance industry players, which have reported third-quarter results so far, earnings of First American Financial Corporation FAF, Kinsale Capital Group, Inc. KNSL and Cincinnati Financial Corporation CINF beat the respective Zacks Consensus Estimate.


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Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report

Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report

First American Financial Corporation (FAF) : Free Stock Analysis Report

Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report

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