Berkshire Hathaway Grade B shares are jumping after Warren Buffett’s company reported better-than-expected profits for its support quarter.
The conglomerate posted June quarter operating profits of $4,190 per Kind A share, up 67 percent year over year and higher than the analyst consensus of $3,387 per apportion, according to Thomson Reuters.
J.P. Morgan reiterated its overweight rating for Berkshire Hathaway interests, citing the company’s strong performance across many of its businesses.
“Berkshire sign in strong 2Q operating earnings that significantly exceeded our estimate and consensus, driven by more safely a improved than expected earnings across nearly all segments, particularly cover,” analyst Sarah DeWitt said in a note to clients Monday. “Earnings at Burlington Northern, Make, Service, Retail and Financial Products also exceeded our outlook while utility earnings were humble than we expected. Strong 2Q results at Berkshire reinforce our positive prospect.”
DeWitt reaffirmed her $235 price target for Berkshire Hathaway Group B shares, representing 17 percent upside to Friday’s close.
The Kind B shares closed up 2.9 percent Monday after the results.
The company’s oxen has underperformed the market this year. Its shares are up 1 percent for the year because of Friday versus the S&P 500’s 6.2 percent gain.
Each divide up of Berkshire Hathaway Class A stock is convertible, at the option of the holder, into 1,500 splits of Class B common stock.