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Summary

  • Berkshire achieved a year-over-year increase of 41% in net earnings.
  • This confirms my positive long-term stance on the company.
  • I didn't anticipate this specific news in my last article, but I did point out Berkshire's various businesses - most of which performed well in Q2.

Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) achieved positive results for Q2 2014. Net earnings increased a sizable 41% year-over-year to $3,889 per class A equivalent share. Operating earnings increased by 10% to $2,634 per share, beating estimates by $149. Revenue increased to $49.76 billion, which represented a year-over-year gain of 11%.

Although the insurance underwriting and insurance investment income decreased for the quarter, net earnings increased in the following businesses: Railroad; Utilities & energy; Manufacturing, service, & retailing; Finance & financial products; and Investments & derivatives.

This positive quarterly report reinforces my bullish stance on the company. My last article on the company was written over a year ago and the stock increased about 21% one year after the publication. Since the article was written over a year ago, I didn't mention anything about Q2 2014 earnings. However, I did point out in the article that Berkshire consists of more than just its Investments business. We can see from this last earnings report that most of the other businesses comprising the company also contributed positively to net earnings. I would expect Berkshire stock to continue to perform well over the long-term.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: Update: Berkshire Hathaway Exceeds Earnings Estimates

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