Berkshire Hathaway (BRK-A) Reports 1Q Operating EPS Miss

Berkshire Hathaway Inc. (BRK.A; BRK.B) –

Berkshire’s operating results for the first quarter of 2017 and 2016 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarter of 2017 and 2016 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

In the table at the top of the page (which, as noted, reports after-tax results), we give investment and derivative gains/losses lines of their own because the amounts of these in any given quarter or year are usually meaningless.

At March 31, 2017, our book value had increased by 3.5% since yearend 2016 to $178,073 per Class A equivalent share. Insurance float (the net liabilities we assume under insurance contracts) at March 31, 2017 was approximately $105 billion, an increase of approximately $14 billion since yearend 2016.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be created as the result of other-than-temporary declines in value without actual realization or when certain types of investments are marked-to-market through earnings. In sum, investment and derivative gains/losses for any particular period are not indicative of quarterly business performance.

You May Also Be Interested In

• Etsy upgraded to buy at BofA on durable growth, buyback potential
• ACRES Commercial Realty says labor dispute is hindering hotel sale
• Ross Stores raises 2026 outlook after strong second-quarter results