Freaky Friday Expected For Berkshire Hathway

Can’t win ’em all, even if you are Warren Buffett.

CNBC: Warren Buffett’s Berkshire Hathaway is expected to report a decline in quarterly operating earnings for the third quarter, its fifth consecutive year-over-year quarterly drop.

Berkshire’s results will be released after tomorrow’s (Friday) stock market close.

Thomson One Analytics has forecasts for Berkshire’s earnings per share from just two analysts covering the stock: $1425 and $1433.38. 

That puts the “consensus” estimate at $1429.19, which would be a 13.6 per cent drop from last year’s third quarter and a 2.4 per cent decline from the second quarter of this year.

…Berkshire’s insurance companies are responsible for a large portion of the company’s operating profits, and they’ve been suffering this year along with the rest of the industry.

We’ll also be looking to see how hard Berkshire’s net income is hit by “unrealized” mark-to-market losses suffered by the long-term derivatives contracts held by the company.   Buffett has said he’s the positions will eventually be very profitable, but they’re under pressure right now due to the continuing turmoil in global financial markets.   Those paper losses fell from $1.6 billion at the end of the first quarter to $962 million for the first half of the year.

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