Berkshire Hathaway EPS May Rise, But Guidance Could Dampen Sentiments
Analysts estimate Warren Buffet’s conglomerate may see decline in share value next quarter
Berkshire Hathaway (BRK.A, BRK.B) is expected to announce a slight increase in the earnings per share at the Q4 earnings call on February 28, analysts’ estimates show. But the Warren Buffet conglomerate may be forced to issue weaker guidance for the next quarter.
The profitability of the conglomerate’s activities in wind and solar power may be called to question, considering President Donald Trump’s push for coal-fired power generation.
BRK.B shares opened yesterday’s trading at $484.12, but slumped to a low of $478.14, before recovering to close at 481.11.
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Citing Barchart estimates, Nasdaq.Com said the Omaha, Nebraska-based market powerhouse may report earnings of $4.43 per share, up from $3.92 per share in the same quarter a year ago.
However, Yahoo Finance cites an analyst as saying that its earnings per share is likely to be $4.19, marginally up from a year ago. Its earnings per share were $4.68 in the quarter ending September 30, 2024, while it was $5.38 in the April-June quarter of last year, up from $5.2 in the January-March quarter.
Analysts recall that the company with interests in activities related to insurance, railroads, energy, manufacturing, retail, and services across diverse sectors as having exceeded the estimates in three of the last four quarters, missing on only one occasion.
Valued at $998.8 billion by market cap, the conglomerate opeates extensive railroad networks in North America and generate energy from diverse sources including natural gas, wind and solar.
Analysts estimate the conglomerate’s quarterly revenue is expected to top $90.4 billion, down from $93.4 billion in the same period last year, according to the website.
Yahoo Finance expects the stock to grow at 6.95% in the current quarter to trail S&P 500’s 14.34% and decline -8.36% in the next quarter widely missing the benchmark index’s expected 7.74% growth.
