Berkshire Hathaway Shares Drop 1.97% While Q1 EPS Forecast Falls 22.9%
Berkshire Hathaway B shares fell 1.97% to $498.08, underperforming a 0.47% S&P 500 gain even as they’re up 1.8% over the past month versus a 0.35% sector increase. Analysts expect Q1 EPS of $5.19 (down 22.9% YoY) and revenue of $102.9 billion (up 8.4%), full-year EPS of $21.14 (–3.9%) on $380.1 billion revenue (+2.3%), and the stock trades at a 24.2x forward P/E versus a 10.7x industry average.
1. Market Underperformance
Berkshire Hathaway B closed at $498.08 on the latest session, slipping 1.97% while the S&P 500 rose 0.47%, the Nasdaq added 0.9% and the Dow gained 0.04%. Over the past month, the stock has climbed 1.8%, outpacing the Finance sector’s 0.35% gain but trailing the broader market’s flat performance.
2. Q1 and Full-Year Earnings Outlook
Analysts forecast first-quarter EPS of $5.19, a 22.88% year-over-year decline, on revenue of $102.89 billion, up 8.4% from a year ago. For the full year, consensus estimates project earnings of $21.14 per share (down 3.91%) and revenue of $380.09 billion (up 2.33%).
3. Valuation and Analyst Ratings
The B shares trade at a forward price/earnings ratio of 24.15, a premium to the industry average of 10.71. The company holds a Sell rating under its proprietary ranking system and sits in the bottom 42% of its industry group, reflecting cautious sentiment on its near-term outlook.