Everything to Expect By Segment From Berkshire Hathaway’s 3Q Earnings Report

Berkshire Hathaway

Berkshire Hathaway (NYSE:$BRKA) (NYSE:$BRKB) is set to release its highly anticipated 3Q reports on November 3rd. Here is everything you can expect, segment by segment.

Berkshire’s railroad, BNSF, has seen a notable improvement in rail volumes and pricing thus far in 2017. Particularly, as the go-to method for transporting energy commodities, BNSF fortunes are driven by commodity prices, coal, oil, and gas prices. Coal shipments have boosted revenue and profit for BNSF last quarter- jumping 29.2% year over year to $912 million.

The manufacturing, retail, and services branch of business have steadily become one of Berkshire’s largest profit drivers. Berkshire saw billion-dollar acquisitions that include Precision Castparts (NYSE:$PCP), Lubrizol (Privately-Traded), and IMC International to add to its growing portfolio. Specifically, Berkshire reported in the second quarter that its auto dealerships, home-furnishing stores, and consumer brands Pampered Chef (Privately-Traded) and See’s Candies (Privately-Traded) all saw notable increases in pre-tax profits.

Berkshire’s insurance units, nonetheless, were a drag on its second-quarter results. With its insurers posting a rare underwriting loss due to a $400 million pre-tax loss at Berkshire Hathaway Reinsurance, this number is speculated to increase in the 3Q due to multiple hurricane catastrophes.

Lastly, Berkshire’s energy quarter, an annuity-like business that produces profits with regularity, will be unlikely to surprise investors. Most of such companies are regulated utility businesses where profits are protected by local monopolies.

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About the author: Jennifer is a University of Western Ontario graduate with a degree in International Business. She strives to excel as a content creator in the digital sphere, working with clients in the Finance and Tech industry to leverage clickable taglines, images, and articles in driving traffic. When not writing, Jennifer enjoys photography, copywriting, and video production.