Proactive Investors - Run By Investors For Investors

Warren Buffett's Berkshire Hathaway posts 3Q earnings which beat Street, buys back nearly $1 billion of its own stock

The large buyback also subtly hints that the Oracle of Omaha, has not seen many attractive new options at a time of sky-high valuations
Berkshire Hathaway CEO  Warren Buffett
The conglomerate smashed third quarter earnings estimates due to stronger insurance results, lower taxes and solid gains from its massive investment portfolio

Shares of Warren Buffett's holding company, Berkshire Hathaway Inc (NYSE:BRK.A), rose in premarket trade Monday after the conglomerate smashed third quarter earnings estimates due to stronger insurance results, lower taxes and solid gains from its massive investment portfolio.

For the quarter ended September 2018, the industrial and insurance conglomerate posted earnings of $2.79 per share on revenue of $63.5 billion. This handily beat consensus earnings estimates of $2.50 per share. Revenue grew 4.8% on a year-over-year basis.

Insurance underwriting income was $441 million in the third quarter, compared to a loss of $1.4 billion in the year-ago period.

The company was awash with cash as available cash on its balance sheet soared to $36.5 billion at the end of September from $25.5 billion at the start of the year.

READ: Warren Buffett's Berkshire Hathaway loads up on Apple, Teva Pharmaceuticals, Goldman Sachs

Berkshire also reported a rare stock buyback of $928 million after the board in July removed strict limits that essentially prohibited share repurchases. The last time Berkshire bought its own stock was in December 2012.

The market of course loves a stock buyback and it has been one factor helping fuel the market run to record highs in 2018. They lower a company's overall share count, which in turn boosts earnings per share.

“The move also indicates that Buffett, an investing guru known as the Oracle of Omaha, has not seen many attractive new options at a time of sky-high valuations. Buffett earlier this year said his investment philosophy is to stick with ‘big, easy decisions and eschew activity’,” reported CNN Business.

Shares in Berkshire Hathaway rose modestly to $308,411.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

View full BRK profile View Profile

Berkshire Hathaway Timeline

Newswire
May 30 2013

Related Articles

Blockchain technology
March 22 2019
The firm’s services include the authoring of industry standard White Papers, technical aspects, design and implementation of market strategies and business appraisals
APQ
April 12 2019
On the back of last year’s sell-off, APQ sees good value in emerging markets, particularly in Turkey, Argentina and Brazil.
1552315586_zinc-periodic-3.jpg
March 12 2019
Mineral and Financial offers investors an inside track to commodities
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use