Berkshire Hathaway, headed up by billionaire investor Warren Buffett, also one of the largest holding companies in the world, is scheduled to post its second-quarter results this Friday once the market closes.
Many investors choose to watch Berkshire Hathaway as a way to track the investment strategies of Warren Buffett. They particularly do this because Berkshire has large stakes in some of the most iconic companies in America, including General Motors, Wells Fargo, Coca-Cola and others.
Berkshire Hathaway’s second-quarter earnings per share estimates are projected to rise by $.32 to reach $1.96. This is based on an estimated net revenue of $3.8 billion, according to Keefe, Bruyette & Woods analyst Meyer Shields.
This is in comparison to a decline in EPS of $.10 to $1.64 during the same quarter last year.
Previously, investor extraordinaire Warren Buffett would encourage investors to look at the operating earnings of the company rather than net income, we learned according to the Associated Press. The investment strategies of Berkshire Hathaway, including using complex derivatives, have a tendency to cause large fluctuations in the company’s bottom line figures. This causes problems and makes it difficult to accurately reflect the health of the businesses that Berkshire Hathaway invests in, Buffett has said in the past.
According to Bloomberg news, analyst consensus estimates tell us that the 12 month forward target price for Class B common stock shares of Berkshire Hathaway is at $149 per share. Based upon its closing price last Friday of $127.55 for each share, the expected potential return on investment is 16.8% over the next few months.
Compared to one year ago on July 26, 2013, Berkshire Hathaway shares are up 8.7%. All in all, the stock has been underperforming when compared to the Standard & Poor’s 500 benchmark. The S&P 500 has been closing at all-time highs over recent months and in the last year has gained 16.9%.
Berkshire Hathaway’s 52-week low is $108.12, and the 52-week high is $129.73.