|Bid||312,739.00 x 800|
|Ask||316,944.00 x 1000|
|Day's Range||305,681.00 - 314,365.00|
|52 Week Range||239,440.00 - 347,400.00|
|Beta (5Y Monthly)||0.78|
|PE Ratio (TTM)||51.18|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||335,000.00|
Berkshire Hathaway Inc. (NYSE: BRK-A)(NYSE: BRK-B) released its second-quarter earnings on Saturday morning and its profit margins were up by 87% from last year. It's a great turnaround for the company, which reported a huge first-quarter loss.The rise in profit margin can be attributed to the increased value of its investment portfolio in the stock market. However, it also took a $9.8 billion write-down on the aircraft manufacturing business due to the economic impact of COVID-19.The total earnings of the company are reported to be $26.3 billion, or $16,314 per Class A share, during the second quarter. That's up from $14.1 billion, or $8,608 per share, a year ago.Profits increased within company's insurance divisions while railroad, utilities and other divisions suffered. In the first quarter, the company suffered a loss of $50 billion. The earnings from this quarter seem to be a positive indicator as there are seismic changes that are still being noticed in consumer behaviour.View more earnings on BRK-AThe company also reduced the value of its Precision Castparts Corp by $9.8 billion due to the challenges faced by the company during the pandemic."The COVID-19 pandemic events will continue to evolve and the effects on our businesses may differ from what we currently estimate," the company wrote in the report.The operating profit of the company fell by 10%. Berkshire was reportedly holding $147 billion cash and short-term investments in the second quarter, of which $5.1 billion was used by Warren Buffett to repurchase Berkshire shares.Image credit: Fortune Live Media, FlickrSee more from Benzinga * Huawei Reportedly Set To Halt Manufacturing Of Kirin Chipsets * NASA SpaceX Crew Return Safely: Capsule Splashes Down * Lowe-LISC Partnership To Provide Relief Grants Up To ,000(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Shares of Berkshire Hathaway Inc. were left out of the stock market rally in the second quarter. Warren Buffett clearly thought the disconnect wasn’t warranted.The famed investor spent a record $5.1 billion buying back Berkshire’s own stock in the second quarter, more than double the amount he’d ever purchased before. That came as he unloaded almost $13 billion of other companies’ shares, including airline stocks and some financials, in what was his biggest selling quarter in more than a decade.Buffett has been building up cash this year and took a more cautious tone at his annual meeting in May as the Covid-19 pandemic has slammed the economy without putting a permanent dent in stock-market valuations. But his appetite for his own stock in the second quarter, along with recent signs that he’s been willing to put more money to work, are reasons for some optimism, according to Jim Shanahan, an analyst at Edward Jones.“The buybacks are a relatively safe way to deploy capital in an uncertain environment,” said Shanahan, who estimated that Berkshire repurchased another $2.4 billion of shares in July. “But it’s clear that that’s not all he’s doing.”Buffett’s cash pile surged to a record $146.6 billion at the end of June, in part from dumping all of his airline shares in April. He’s been more active lately, striking a deal for natural-gas assets in July and snapping up at least $2 billion of Bank of America Corp. stock in recent weeks through Aug. 4. Overall, Saturday’s disclosures signaled to longtime shareholder Bill Smead that Berkshire is a bit more certain about its standing in this volatile environment.“He sees that the company itself can get through the worst body blow,” said Smead, the chief investment officer at Smead Capital Management, which oversees $1.5 billion including Berkshire shares. And his buybacks signal that “it got obvious to him how out of favor his own stock is in relation to other investments you could make in other companies.”Berkshire’s Class A shares, which fell in line with the S&P 500 in the first three months of the year as the pandemic spread in the U.S., fell another 1.7% last quarter while the broader index rallied 20%. Buffett said in early May that repurchases weren’t more compelling than at previous times, but the buybacks in the quarter suggest his thinking shifted.The company’s stock has rallied in July and August, with Shanahan attributing that to investors being encouraged by Berkshire’s recent deals, but it’s still underperforming in 2020. Berkshire Class A shares were down 7.4% for the year through Friday’s close, compared with the 3.7% gain in the S&P 500.Berkshire’s operating profit slumped 10% in the second quarter to $5.5 billion. That was driven by a 42% drop in earnings from the conglomerate’s manufacturing, service and retailing businesses.The company also took $10 billion of impairment charges related to its Precision Castparts unit. Berkshire bought Precision Castparts in 2016 in a transaction valued at $37.2 billion, making it one of Buffett’s biggest deals. Now the maker of jet-engine blades and aircraft structural components is bracing for lean times as Boeing Co. and Airbus SE cut jetliner production and less air travel reduces the need for replacement parts.The impairment charge “reflects a very ample purchase price combined with some secular challenges,” Cathy Seifert, an analyst at CFRA Research, said in an interview. “The sense that I get from the magnitude of the writedown and the tone of some of the comments related to air travel, and the industry supporting air travel, is that there’s some demand destruction there that could be permanent or semi-permanent.”The challenges have forced the aerospace-parts maker to undergo “aggressive restructuring,” with the company cutting its workforce by about 10,000 employees during the first half of 2020.“We believe the effects of the pandemic on commercial airlines and aircraft manufacturers continues to be particularly severe,” Berkshire said in a regulatory filing Saturday. “In our judgment, the timing and extent of the recovery in the commercial airline and aerospace industries may be dependent on the development and wide-scale distribution of medicines or vaccines that effectively treat the virus.”Other key takeaways from the results:Unrealized gains and losses in Berkshire’s massive stock portfolio count toward the bottom line. So the S&P 500’s rally in the second quarter pushed net income to $26.3 billion.Insurance underwriting profit more than doubled to $806 million in the period. That was helped by gains at auto insurer Geico as fewer accidents benefited the business. Berkshire warned that Geico might be hurt in the next three quarters by a program that’s giving drivers a credit on their premiums.Berkshire’s press release is here.(Updates with analyst and shareholder comments starting in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
* This weekend's Barron's cover story discusses how to prepare a portfolio for the upcoming elections. * Other featured articles look at stand-out dividend growth stocks, how to play dual-share stocks and who wins and loses from the shift in moviegoing. * Also, the prospects for Warren Buffet's empire, a cosmetics giant, a pawn shop operator and more.Cover story "2020 Election: How to Prepare Your Portfolio" by Lisa Beilfuss explains what three potential election outcomes could mean for stocks from Exxon Mobil Corporation (NYSE: XOM) to Tesla Inc(NASDAQ: TSLA) and for industry sectors and the U.S. economy.Ben Levisohn's "Walt Disney and the End of Moviegoing" makes a case that Walt Disney Co (NYSE: DIS) releasing "Mulan" via Disney+ may change how we watch movies forever. That's bad news for companies like AMC Entertainment Holdings Inc (NYSE: AMC).In "Estee Lauder Stock Could Shine When the Pandemic Passes," Teresa Rivas shows why leading beauty brands, loyal customers and a push into e-commerce should help Estee Lauder Companies Inc (NYSE: EL) emerge even stronger from the coronavirus crisis.Several other tech giants would love to make a bid, according to "TikTok Is Taking Over. Microsoft Could Grab It for a Song" by Jack Hough. See why Barron's says only Microsoft Corporation (NASDAQ: MSFT) is in a strong position.In Lawrence C. Strauss's "Visa, Apple, and Other Dividend-Growth Stocks Are Standouts," see what sets Apple Inc. (NASDAQ: AAPL) and Visa Inc (NYSE: V) apart from other companies that have hiked dividends in recent months.See also: Why Bezos Selling B In Amazon Shares Is Anything But Earth-Shaking"How to Invest in Lennar and Other Dual-Share Companies at a Discount" by Andrew Bary takes a look at how the high-vote shares of homebuilder Lennar Corporation (NYSE: LEN) a few other companies offer a cheaper way to gain ownership.Berkshire Hathaway Inc. (NYSE: BRK.A) had outsized earnings in the second quarter driven by gains in its equity portfolio, particularly its largest holding. So says Andrew Bary's "Warren Buffett's Berkshire Shows Strong Investment Gains."In "How Pawn Shops Met Their Match in Covid-19," Ben Walsh points out that Barron's was bullish on FirstCash Inc (NASDAQ: FCFS) in February, calling it a good hedge against recession. A lot has changed since, and Barron's takes another look.Also in this week's Barron's: * Biden versus Trump on economic recovery * Biden versus Trump on taxes * Why the job numbers look deceptively good * Making Wall Street more inclusive * A private-equity firm that went on a nursing-home buying spree * The new front in the tech cold war * Betting that the rush into gold is not overAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Benzinga's Bulls And Bears Of The Week: Apple, Ford, Merck, Uber And More * Notable Insider Buys: AT&T, Kinder Morgan And More * Barron's Picks And Pans: AutoNation, Overstock.com, SPACs And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.