Yahoo Finance Berkshire (BRK.B) to Report Q4 Earnings: What's in Store?
Berkshire Hathaway Inc. (BRK.B) is expected to report fourth-quarter 2022 earnings soon. BRK.B delivered an earnings surprise in each of the last four quarters, the average being 22.18%.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.31 per share, indicating an increase of 1.2% from the year-ago quarter reported figure.
Factors to Consider
Berkshire Hathaway’s higher average premiums per auto policy due to rate increases, net increases from new property business and rates may have aided premium revenues. The upside is likely to have been partly offset by a decrease in policies in-force and unfavorable foreign currency translation effects.
Per Marsh, global commercial insurance prices in the fourth quarter of 2022 grew 4%. The price increase reflected the 21st consecutive quarter of increases since the beginning of the index in 2012. Pricing increases moderated in most regions, except for financial and professional lines.
Continued insurance business growth is expected to have increased float.
Higher average revenue per car per unit resulting from higher fuel surcharge revenues driven by higher fuel prices, along with increased rates per car per unit, are likely to have benefited the railroad business. The upside is likely to have been partly offset by lower overall freight volumes.
The Utilities and energy business is expected to have benefited from higher earnings from tax equity investments and from the natural gas pipeline and Northern Powergrid businesses. The increase is likely to have been partly offset by lower earnings from the U.S. regulated utilities and real estate brokerage businesses.
Manufacturing, service and retailing businesses are expected to have benefited from higher customer demand for products and services in many businesses.
Strategic acquisitions are likely to have boosted the insurer’s performance.
Expenses are expected to have increased on higher insurance losses and loss adjustment expenses, cost of sales and services, cost of leasing, interest expense, freight rail transportation expenses, utilities and energy cost of sales and other expenses.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Berkshire Hathaway this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case as you can see below.
Earnings ESP: Berkshire Hathaway has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.31. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Berkshire Hathaway Inc. Price and EPS Surprise
Berkshire Hathaway Inc. price-eps-surprise | Berkshire Hathaway Inc. Quote
Zacks Rank: Berkshire Hathaway currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some finance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arbor Realty Trust ABR has an Earnings ESP of +2.86% and a Zacks Rank of 3. The Zacks Consensus Estimate for Arbor Realty’s fourth-quarter 2022 earnings is pegged at 47 cents per share, indicating a decrease of 17.5% from the year-ago reported figure.
ABR’s earnings beat estimates in each of the four trailing quarters.
AssetMark Financial Holdings, Inc. AMK has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for AssetMark Financial’s fourth-quarter 2022 earnings is pegged at 44 cents per share, indicating an increase of 33.3% from the year-ago reported figure.
AMK’s earnings beat estimates in three of the last four quarters and missed in the other one.
Bank of Montreal BMO has an Earnings ESP of +0.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Bank of Montreal’s fourth-quarter 2022 earnings is pegged at $2.30 per share, indicating a decrease of 25.1% from the year-ago reported figure.
BMO’s earnings beat estimates in three of the last four quarters and missed in the other one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Bank Of Montreal (BMO) : Free Stock Analysis Report
Arbor Realty Trust (ABR) : Free Stock Analysis Report
AssetMark Financial Holdings, Inc. (AMK) : Free Stock Analysis Report
