We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter 2024 operating earnings of $11.6 billion, which increased 15.5% year over year. The increase was driven by higher earnings insurance underwriting and insurance-investment income.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Revenues increased 1.2% year over year to $93.6 billion, attributable to higher revenues at Insurance and Other.
Costs and expenses decreased 1.2% year over year to $79.6 billion, largely due to a decrease in freight rail transportation expenses, utility and energy cost of sales and other expenses, interest expense, and cost of sales and services. The figure was lower than our estimate of $86 billion.
Segment Performance
Berkshire Hathaway’s Insurance and Other segment revenues increased 4.2% year over year to $68.4 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting earnings increased 81.5% year over year to $2.3 billion.
Railroad, Utilities and Energy operating revenues decreased 6% year over year to $25.2 billion, primarily due to lower freight rail transportation revenues, utility and energy operating revenues, service revenues and other income. The figure was lower than our estimate of $28 billion. Pre-tax earnings of Railroad increased 0.5% year over year to $1.6 billion.
Operating earnings from the Railroad business increased 0.3% year over year to $1.8 billion.
Total revenues at Manufacturing, Service and Retailing increased 0.2% year over year to $42.2 billion. Pre-tax earnings decreased 5.6% year over year to $4.2 billion.
Earnings from Manufacturing, Service and Retailing businesses decreased 5.3% year over year to $3.2 billion.
Financial Position
As of Jun 30, 2024, consolidated shareholders’ equity was $607.9 billion, up 7.1% from the level as of Dec 31, 2023. At quarter-end, cash and cash equivalents were $36.9 billion, up 9.5% from the level at 2023-end.
BRK.B exited the second quarter of 2024 with a float of about $169 billion, which remained unchanged from the figure at the end of 2023.
Cash flow from operating activities totaled $24.2 billion in the reported quarter, up 14.5% from the year-ago period.
Berkshire Hathaway bought back shares worth $2.9 billion in the first half of 2024.
RLI Corp. (RLI - Free Report) reported second-quarter 2024 operating earnings of $1.72 per share, beating the Zacks Consensus Estimate by 27.4%. The bottom line improved 48.3% year over year. Operating revenues for the reported quarter were $413 million, up 17.6% year over year, driven by 17.6% higher net premiums earned and 18% higher net investment income. The top line beat the Zacks Consensus Estimate of $403 million. Gross premiums written increased 11% year over year to $563.4 million. Our estimate was $664 million.
Net investment income increased 18% year over year to $34 million. Our estimate was $39.1 million. The Zacks Consensus Estimate was pegged at $37.4 million. Total expenses increased 9.5% year over year to $314.8 million. Our estimate was $331.7 million. Underwriting income increased 70% year over year to $70 million. The combined ratio improved 570 basis points year over year to 81.5. The Zacks Consensus Estimate for the metric was pegged at 95.3, while our estimate was 89.9.
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2024 operating income of $1.29 per share, which surpassed the Zacks Consensus Estimate by 33%. The bottom line increased 7% year over year. Total operating revenues in the quarter under review were $2.4 billion, which improved 10.8% year over year. However, the top line missed the consensus mark by 1.5%. Net written premiums climbed 14% year over year to $2.4 billion.
Investment income, net of expenses, increased 10% year over year to $242 million and missed our estimate of $246.2 million. The Zacks Consensus Estimate was pegged at $252 million. Total benefits and expenses of Cincinnati Financial increased 11.2% year over year to $2.1 billion. Our estimate was $2.2 billion. In its property & casualty insurance business, CINF witnessed an underwriting income of $35 million, which decreased 26% from the year-ago period. Our estimate was pegged at an income of $1.5 million.
The Travelers Companies, Inc. (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 1%. Net written premiums increased 8% year over year to a record $11.1 billion. The figure was higher than our estimate of $10.4 billion.
Net investment income increased 24.2% year over year to $885 million. The figure was higher than our estimate of $852.14 million. The Zacks Consensus Estimate was pegged at $861.2 million. Catastrophe loss was $1.51 billion, pre-tax, wider than a loss of $1.18 million, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting loss of $65 million, narrower than a loss of $640 million incurred in the year-ago quarter.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Berkshire Hathaway (BRK.B) Q2 Earnings & Revenues Rise Y/Y
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered second-quarter 2024 operating earnings of $11.6 billion, which increased 15.5% year over year. The increase was driven by higher earnings insurance underwriting and insurance-investment income.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Berkshire Hathaway Inc. price-consensus-eps-surprise-chart | Berkshire Hathaway Inc. Quote
Behind the Headlines
Revenues increased 1.2% year over year to $93.6 billion, attributable to higher revenues at Insurance and Other.
Costs and expenses decreased 1.2% year over year to $79.6 billion, largely due to a decrease in freight rail transportation expenses, utility and energy cost of sales and other expenses, interest expense, and cost of sales and services. The figure was lower than our estimate of $86 billion.
Segment Performance
Berkshire Hathaway’s Insurance and Other segment revenues increased 4.2% year over year to $68.4 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting earnings increased 81.5% year over year to $2.3 billion.
Railroad, Utilities and Energy operating revenues decreased 6% year over year to $25.2 billion, primarily due to lower freight rail transportation revenues, utility and energy operating revenues, service revenues and other income. The figure was lower than our estimate of $28 billion. Pre-tax earnings of Railroad increased 0.5% year over year to $1.6 billion.
Operating earnings from the Railroad business increased 0.3% year over year to $1.8 billion.
Total revenues at Manufacturing, Service and Retailing increased 0.2% year over year to $42.2 billion. Pre-tax earnings decreased 5.6% year over year to $4.2 billion.
Earnings from Manufacturing, Service and Retailing businesses decreased 5.3% year over year to $3.2 billion.
Financial Position
As of Jun 30, 2024, consolidated shareholders’ equity was $607.9 billion, up 7.1% from the level as of Dec 31, 2023. At quarter-end, cash and cash equivalents were $36.9 billion, up 9.5% from the level at 2023-end.
BRK.B exited the second quarter of 2024 with a float of about $169 billion, which remained unchanged from the figure at the end of 2023.
Cash flow from operating activities totaled $24.2 billion in the reported quarter, up 14.5% from the year-ago period.
Berkshire Hathaway bought back shares worth $2.9 billion in the first half of 2024.
Zacks Rank
BRK.B currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property & Casualty Insurers
RLI Corp. (RLI - Free Report) reported second-quarter 2024 operating earnings of $1.72 per share, beating the Zacks Consensus Estimate by 27.4%. The bottom line improved 48.3% year over year. Operating revenues for the reported quarter were $413 million, up 17.6% year over year, driven by 17.6% higher net premiums earned and 18% higher net investment income. The top line beat the Zacks Consensus Estimate of $403 million. Gross premiums written increased 11% year over year to $563.4 million. Our estimate was $664 million.
Net investment income increased 18% year over year to $34 million. Our estimate was $39.1 million. The Zacks Consensus Estimate was pegged at $37.4 million. Total expenses increased 9.5% year over year to $314.8 million. Our estimate was $331.7 million. Underwriting income increased 70% year over year to $70 million. The combined ratio improved 570 basis points year over year to 81.5. The Zacks Consensus Estimate for the metric was pegged at 95.3, while our estimate was 89.9.
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2024 operating income of $1.29 per share, which surpassed the Zacks Consensus Estimate by 33%. The bottom line increased 7% year over year. Total operating revenues in the quarter under review were $2.4 billion, which improved 10.8% year over year. However, the top line missed the consensus mark by 1.5%. Net written premiums climbed 14% year over year to $2.4 billion.
Investment income, net of expenses, increased 10% year over year to $242 million and missed our estimate of $246.2 million. The Zacks Consensus Estimate was pegged at $252 million. Total benefits and expenses of Cincinnati Financial increased 11.2% year over year to $2.1 billion. Our estimate was $2.2 billion. In its property & casualty insurance business, CINF witnessed an underwriting income of $35 million, which decreased 26% from the year-ago period. Our estimate was pegged at an income of $1.5 million.
The Travelers Companies, Inc. (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 1%. Net written premiums increased 8% year over year to a record $11.1 billion. The figure was higher than our estimate of $10.4 billion.
Net investment income increased 24.2% year over year to $885 million. The figure was higher than our estimate of $852.14 million. The Zacks Consensus Estimate was pegged at $861.2 million. Catastrophe loss was $1.51 billion, pre-tax, wider than a loss of $1.18 million, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting loss of $65 million, narrower than a loss of $640 million incurred in the year-ago quarter.