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Berkshire Hathaway earnings -- who knows?

Posted Feb 1st 2007 9:47AM by Trey Thoelcke
Filed under: Earnings reports, Analyst reports, Forecasts, Berkshire Hathaway (BRK.A), Target Corp. (TGT), United Parcel'B' (UPS)

From its origin in textiles in the nineteenth century, Berkshire Hathaway (NYSE:BRK.A) has grown to become the monster holding company that it is today. Though its core business is now insurance, BRK has fingers in many pies: from owning Geico, Dairy Queen and Fruit of the Loom, to its pieces in the Washington Post Co. (NYSE:WPO), UPS Inc. (NYSE:UPS), and Target Corp. (NYSE:TGT), among many others.

It's all led by investment sage Warren Buffett, the so-called Oracle of Omaha. Buffett is well-known for his philosophy of value investing for the long run, and has often discouraged focusing on quarterly reports. That may be why I had such a hard time finding a confirmed release date for BRK's next earnings report. It also may be why so few analysts closely cover BRK, even though multitudes of individual investors hang on Buffett's every word and move.

The consensus estimate, to the extent that one can truly reach a consensus with only two or three analysts' opinions, is for $1452.36 per share, or growth of 21.4%, according to Thomson Financial. As diversified as BRK is, it's hard to imagine it having a weak quarter, yet BRK.A is rated as a hold by analysts, for reasons our own Jonathon Berr recently explored. The median target price is $123,000. BRK class A shares closed Wednesday at $110,050 (class B shares at $3,667).

That may be neither here nor there for investors, who, like Buffett, are in it for the long haul. BRK will report sometime between now and March 1, and when it does, will it beat the expectations of those who suggest holding (or even selling) the stock, few as they may be? Or will analysts be right and BRK will somehow fall short? What do you think?

Also check out some other earnings reports that we're following, and let us know what you're expecting.

Tags: Berkshire Hathaway, BerkshireHathaway, BRK, Dairy Queen, earnings, earnings reports, Fruit of the Loom, Geico, quarterly reports, tgt, ups, value investing, ValueInvesting, Warren Buffett

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