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Berkshire Hathaway: Balance sheet pending and analysts expect decline

Are you curious about the latest developments at Berkshire Hathaway $BRK.B (-0.13%)? On February 22, 2025, the company will announce its figures for the past quarter. Analysts' expectations are mixed.

Average earnings per share of USD 4.62 are forecast for the past quarter. By comparison, this figure was an impressive USD 17.36 in the same quarter of the previous year. A significant decline that raises questions.

A decline in turnover is also expected. Analysts are forecasting USD 92.16 billion, which corresponds to a drop of 1.31% compared to the previous year. The outlook for the full fiscal year has also clouded over. Average earnings per share could end up at USD 19.84, compared to USD 44.27 in the previous year.

How do you see the developments at Berkshire Hathaway? Is this a sign of ongoing problems or temporary weakness? 📈

6 Comments

beardonfire@beardonfire

They sell shares and accumulate money, so the money by itself does not generate any cashflow.

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Business News Germany@Business_News

@beardonfire Absolutely right. Do you think this also gives some insight into Buffett's expectation e.g. of the market possibly being overvalued and increasing risk of going down.

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beardonfire@beardonfire

@Business_News well, I do not think he said that the market will crash down, he just thinks that now it is overvalued, maybe if it will stay flat during some time - the value will catch up :)

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Business News Germany@Business_News

@beardonfire Agreed. Also do not think he said it... would be against his believes that things can stay irrational for quite long. But you could at least speculate that from a value perspective he maybe believes that the price is too high which also could lead to the perception that the risk of a crash could be higher... of cause also could flat out and catch up... fair point.

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GG H.@GGHyperX

Nevertheless, the share price is virtually at its ATH. Isn't that a contradiction?

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Business News Germany@Business_News

Not necessarily... the share price primarily reflects future expectations and, especially in the investment business, there are situations in which it makes sense to have a lot of cash. Although this reduces the current profit, it enables investments to be made as soon as there are interesting opportunities.

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