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Unrealized Investment Losses Mar Berkshire's Results – Morningstar.com

Published

4 years ago

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With wide-moat Berkshire Hathaway’s (BRK.B) first-quarter results being more or less in line with our expectations, we are leaving our $342,500 ($228) per Class A (B) share fair value estimate in place. That said, as we expect to continue to uncover tidbits of information related to the impact that the coronavirus pandemic could have on Berkshire’s different operating subsidiaries, we are likely to make adjustments to our near-term assumptions as details become available, which should allow us to make more informed projections for the firm’s businesses (and possibly alter our fair value estimate).

First-quarter revenue, which now includes unrealized and realized gains/losses from Berkshire’s investments and derivatives portfolios, decreased 111.1% to negative $9.0 billion. Excluding the impact of investment and derivative gains/losses and other adjustments, First-quarter operating revenue increased 1.0% to $61.3 billion. Operating earnings, exclusive of the impact of investment and derivative gains/losses, increased 5.7% year over year to $5.9 billion during the March quarter. When including the impact of the investment and derivative gains/losses, operating earnings fell 453.5% to negative $49.7 billion.

Book value per share, which still serves as a decent proxy for measuring changes in Berkshire’s intrinsic value, declined 12.2% sequentially to $228,953 (from $260,906 at the end of December), slightly better than our forecast of $228,293. The company closed out the March quarter with a record $137.3 billion in cash and cash equivalents, up from $128.0 at the end of last year. This left Berkshire with an estimated $112 billion in dry powder that could be committed to investments, acquisitions, and share repurchases. While the company did repurchase $1.6 billion of common stock during the March quarter, the bulk of that took place in February and the total amount was less than the $2.2 billion spent on buybacks during the fourth quarter of 2019.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

5 days ago

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October 16, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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1 week ago

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October 11, 2024

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

Published

2 weeks ago

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October 10, 2024

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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