Key Takeaways:
Berkshire Hathaway Inc. (BRK.A, BRK.B) reported first-quarter net earnings of $10.1 billion, more than double the $4.6 billion from a year earlier, as the conglomerate’s insurance businesses led broad-based gains. The results were released Saturday ahead of the company’s annual shareholder meeting.
The strong performance marks Greg Abel's first quarter as chief executive officer. The Omaha, Nebraska-based company saw operating profit, a figure that excludes certain investment results, climb 18% to $11.3 billion, or $7,889.44 per Class A share. This figure surpassed the $7,611.35 per share average forecast from analysts surveyed by FactSet.
A primary driver for the quarter was the insurance unit, which saw its underwriting profit grow to $1.7 billion from $1.34 billion a year ago. Profits also grew at the BNSF railroad and Berkshire’s various utility and manufacturing companies. The company's cash pile swelled to a record $397.4 billion, partly due to Berkshire becoming a net seller of stocks, offloading $8.1 billion in equities. The company also repurchased $234 million of its own shares.
The significant increase in profit and record cash position underscore the earnings power of Berkshire's diverse portfolio, even as it trims its equity investments. Investors will be watching for further details from the annual meeting on how the company plans to deploy its massive cash reserves.
This article is for informational purposes only and does not constitute investment advice.
