Why Is Berkshire Hathaway B (BRK.B) Up 6.4% Since Last Earnings Report?

It has been about a month since the last earnings report for Berkshire Hathaway B (BRK.B). Shares have added about 6.4% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Berkshire Hathaway B due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Berkshire Hathaway Q2 Earnings & Revenues Decline Year Over YearBerkshire Hathaway second-quarter 2025 operating earnings of $11.2 billion, which decreased 3.8% year over year. The decrease was due to lower earnings in insurance underwriting and other areas, offset by higher earnings in Insurance-investment income, BNSF, Berkshire Hathaway Energy Company, Manufacturing, service, and retailing.Behind the HeadlinesRevenues declined 1.2% year over year to $92.5 billion due to lower revenues at Insurance and Other and Railroad, Utilities and Energy. Costs and expenses decreased 0.3% year over year to $79.4 billion, largely due to a decline in insurance losses and loss adjustment expenses, cost of sales and services, interest expense, freight rail transportation expenses, utility and energy cost of sales and other expenses. The figure was lower than our estimate of $97.3 billion.Segment PerformanceBerkshire Hathaway’s Insurance and Other segment revenues decreased 1.2% year over year to $80.4 billion in the reported quarter due to lower sales and service revenues. It was offset by higher insurance premiums earned, leasing revenues and interest, dividend, and other investment income. Insurance underwriting earnings decreased 12% year over year to $2 billion. Railroad, Utilities, and Energy operating revenues decreased 0.9% year over year to $12.1 billion, primarily due to lower freight rail transportation revenues, service revenues, and other income. The figure was lower than our estimate of $25.4 billion. Pre-tax earnings of the Railroad increased 11.5% to $1.8 billion, attributable to lower operating expenses.Operating earnings from the Railroad business increased 10.6% year over year to $2 billion. Total revenues at Manufacturing, Service, and Retailing decreased 3.4% year over year to $53.4 billion. Pre-tax earnings increased 4.7% year over year to $4.6 billion.Earnings from Manufacturing, Service, and Retailing businesses rose 6.5% year over year to $3.6 billion.Financial PositionAs of June 30, 2025, consolidated shareholders’ equity was $670.3 billion, up 2.8% from the level as of Dec. 31, 2024. At quarter-end, cash and cash equivalents were $96.2 billion, doubled from the level at 2024-end.BRK.B exited the second quarter of 2025 with a float of about $174 billion, up from $171 billion at Dec. 31, 2024Cash flow from operating activities totaled $21 billion in the reported quarter, down 13.1% from the year-ago period. BRK.B did not repurchase shares in the first six months of 2025.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, Berkshire Hathaway B has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Berkshire Hathaway B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerBerkshire Hathaway B belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, W.R. Berkley (WRB), has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.W.R. Berkley reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.05 for the same period compares with $1.04 a year ago.For the current quarter, W.R. Berkley is expected to post earnings of $1.03 per share, indicating a change of +10.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.W.R. Berkley has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks