Berkshire Hathaway-B Stock FY2023 Q4 Third-party Analysts' Forecast & Preview

Berkshire Hathaway (BRKB) stock has staged a strong comeback in 2023 after lagging the broader market in 2022. Through October 9th, BRKB is up 19.38% year-to-date, beating the S&P 500's 16.88% gain.

After a mixed 2021 and 2022, Berkshire appears to have found its footing again this year. The diversified conglomerate reported second quarter earnings in August that beat analyst estimates. EPS rose 8% and revenue jumped 21%.

Berkshire's $147.38 billion cash reserves pile also provides reassurance. This level gives Berkshire flexibility to pursue acquisitions, stock buybacks and weather economic uncertainty. During Q2, Berkshire repurchased $1.4 billion of its own shares.

In late October, BRKB hit a new all-time high after Berkshire completed its $11.6 billion takeover of insurer Alleghany Corporation. This was Berkshire's largest acquisition since 2016, further diversifying its insurance operations.

On the technical side, BRKB stock is extended from a cup-with-handle buy point of 331.84. It is trading well above its 21-day and 50-day moving averages after recently recapturing the 21-day line. The relative strength line is also near 52-week highs, reflecting BRKB's outperformance versus the S&P 500.

Source: This Is The Ultimate Warren Buffett Stock, But Should You Buy As It Hits Record High? (www.investors.com) >>

Part 2：Berkshire Hathaway-B FY2023 Q3 Earnings Report Recap

1. Berkshire Hathaway-B Key Indicators and Historical Earnings Report

• - Berkshire Hathaway-B FY2023 Q3 EPS was $-5.88, YOY +362.72%
• - Berkshire Hathaway-B PE Ratio today is -- 
• - Berkshire Hathaway-B FY2023 Q3 Revenue was $93.2B, YOY +21.20% 
• - Berkshire Hathaway-B FY2023 Q3 FCF was $8.4B, YOY +9.96%
• - Berkshire Hathaway-B FY2023 Q3 Current Ratio was undefined, YOY undefined 
• - Berkshire Hathaway-B FY2023 Q3 ROA was -1.24%, YOY +301.10%
• - Berkshire Hathaway-B FY2023 Q3 ROE was -2.40%, YOY +292.65%
• - Berkshire Hathaway-B FY2023 Q3 Gross Margin was undefined, YOY undefined 
• - Berkshire Hathaway-B FY2023 Q3 Net Margin was -13.48%, YOY +284.31%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Berkshire Hathaway-B FY2023 Q3 Financial Statement Analysis

• Second Quarter and First Half 2023 Results:

  ● Net earnings attributable to Berkshire shareholders were $35.91 million in Q2 2023, compared to a net loss of $43.62 million in Q2 2022. For the first half of 2023, net earnings were $71.42 million, compared to a net loss of $38.04 million in the first half of 2022.

  ● The improved earnings in Q2 and the first half of 2023 were primarily due to investment gains on equity securities of $33.08 million in Q2 2023 and $67.82 million in the first half of 2023, versus losses of $66.85 million and $68.60 million in the respective 2022 periods.

  ● Insurance underwriting generated earnings of $1.25 billion in Q2 2023 and $2.16 billion in the first half of 2023, compared to $0.72 billion and $0.88 billion in the respective 2022 periods. The increases were primarily due to lower losses at GEICO.

  ● Railroad earnings from BNSF declined 24.0% to $1.26 billion in Q2 2023 and 17.3% to $2.51 billion in the first half of 2023 versus the respective 2022 periods due to lower volumes and higher expenses.

  ● Berkshire Hathaway Energy earnings were relatively unchanged at $0.79 billion in Q2 2023 but declined 23.2% to $1.20 billion in the first half of 2023 compared to $1.56 billion in the first half of 2022, reflecting lower utility and energy earnings.

  ● Earnings from manufacturing, service and retailing businesses increased 4.3% to $3.39 billion in Q2 2023 and 1.5% to $6.37 billion in the first half of 2023 compared to the respective 2022 periods.

  ● After-tax foreign currency exchange gains on non-US dollar debt were $0.47 billion in Q2 2023 and $0.45 billion in the first half of 2023 compared to $1.06 billion and $1.58 billion in the respective 2022 periods.

Financial Condition:

● As of June 30, 2023, consolidated shareholders' equity was $539.88 billion, an increase of $66.46 billion since December 31, 2022.

● At June 30, 2023, insurance and other businesses held cash, cash equivalents and U.S. Treasury Bills of $141.90 billion. Equity and fixed maturity securities were $375.80 billion.

● Consolidated borrowings were $125.33 billion at June 30, 2023. Over 95% of the debt was issued by the parent, BHFC, BNSF, BHE and Pilot.

● In the first half of 2023, the company repurchased $5.85 billion of its common stock under its share repurchase program.

In summary, Berkshire experienced significantly improved earnings in Q2 and the first half of 2023 compared to 2022, led by investment gains on equity securities. The company continues to maintain a very strong financial condition and liquidity position.

Source: Berkshire Hathway FY2023 Q2 Financial results (www.berkshirehathaway.com) >>

Part 3：Berkshire Hathaway-B FY2023 Q4 Earnings Report Forecast & Preview

1. Berkshire Hathaway-B FY2023 Q4 Forecast By Third Party Analyst Rating, December 4th

Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 2 third-party financial analysts, BRK.B Stock has been given a Moderate Buy rating. Analysts forecast an average stock price of $410.000 (Average) for the next 12 months.

- Third Party Analyst rating: Moderate Buy

- Berkshire Hathaway-B Price Target: $410.000

- Forecast of FY2023 Q4 EPS: --

- Forecast of FY2023 Q4 Revenue: $88.4B

- Forecast of FY2023 Q4 EBIT: --

Source: https://www.benzinga.com/quote/BRK.B/analyst-ratings

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Berkshire Hathaway-B Forecast By Technical Analysis, December 4th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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