Precision Castparts Q2 Profits Surge 34%, Now Worth Up to $75B
BRKA is trading near its 52-week low of $693,021.02 (14% above the low).
Summary
Berkshire's Precision Castparts unit saw Q2 pretax profits jump 34% on a 14% sales gain to $3.1 billion, driven by the commercial aircraft boom. Barron's estimates the unit is now worth $60-$75 billion, well above the $37 billion Berkshire paid in 2016, and on track for $2.5 billion in after-tax earnings this year. This follows Berkshire's strong Q2 earnings reported Saturday, where operating income rose 16%. The valuation implies a significant recovery from the 2020 write-down, though annualized returns remain modest relative to the S&P 500.
At the time of this announcement, BRKA was trading at $790,763.05 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1T. The 52-week trading range was $693,021.02 to $806,102.81. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.