Berkshire Hathaway Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Berkshire Hathaway Reports Q2 2024 Financial Results
Berkshire Hathaway Inc. (NYSE: BRK.B) has released its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Wall Street Estimates | Q1 2024 | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue ($M) | N/A | N/A | N/A | N/A | N/A | N/A |
| Earnings per Share (EPS) | N/A | N/A | N/A | N/A | N/A | N/A |
Berkshire Hathaway’s Q2 2024 results reflect a decrease in net earnings compared to Q1 2024, driven by macroeconomic events and market volatility.
Segment Revenue Performance
| Segment | Q2 2024 Revenue ($M) | Prior Guidance ($M) | YoY Change | Comments |
|---|---|---|---|---|
| Insurance—Underwriting | N/A | N/A | N/A | Revenue largely stable; slight improvements noted in underwriting performance. |
| Railroad (BNSF) | Roughly unchanged YOY | N/A | 0% | Litigation impacts recorded; productivity improvements partially offset declines. |
| Energy Utilities (BHE) | Decreased YOY | N/A | -9.1% | Earnings decline mainly due to litigation costs related to wildfire expenses and higher fuel costs. |
| Manufacturing, Service, Retailing | Decreased 5.3%-2.2% | N/A | -5.3% | Revenue drop due to weak performance in retail and service segments, offset by some manufacturing gains. |
Revenue performance across segments shows mixed results, reflecting ongoing market challenges. Notable declines in energy utilities and stable performance in the railroad segment, aligned with internal assessments.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | Comments |
|---|---|---|---|
| Policies-in-force (GEICO) | -4.3% | N/A | Continued decline in auto insurance policies; increased premiums per policy. |
| Flight hours (NetJets) | Increased | N/A | Higher flight activities; reflects demand for business aviation services. |
| Unit Sales (Forest River) | +9.4% | N/A | Boost due to acquisitions and higher production rates. |
Operational data indicate strong performance in aviation services and recreational vehicle sales, offsetting policy declines in the insurance sector.
Management Commentary
Warren E. Buffett, Chairman and CEO, emphasized the resilience of Berkshire's diversified business model amid economic uncertainties and market fluctuations. He noted the importance of maintaining strong capital and liquidity to navigate these challenges.
Dividends and Share Repurchase Program
No new dividends were announced. Berkshire continued its robust share repurchase program, buying back $2.9 billion worth of shares in the first half of 2024, in line with its policy of repurchasing shares when below intrinsic value, determined by Buffett.
Forward Guidance
Berkshire Hathaway did not provide specific financial guidance for the upcoming quarters, maintaining its strategy of focusing on long-term value creation over short-term forecasting.
Stock Performance
Post-earnings, Berkshire Hathaway’s stock declined by approximately 4.34%, reflecting market reaction to the mixed quarterly results and economic outlook.
The above summary encapsulates Berkshire Hathaway's comprehensive financial performance and strategic initiatives in Q2 2024, underpinning its resilience amidst ongoing macroeconomic instability.