Berkshire Hathaway $BRK.B just delivered a double miss, falling short on revenue and earnings.
But the real bombshell came later: Warren Buffett is stepping down as CEO at the end of 2025.
The result? Berkshire just logged its worst earnings reaction since 2011.
This isn’t just another miss. This is the market reacting to the end of an era.
The Oracle of Omaha has been Berkshire's steady hand for decades, and while succession plans have been public for years, the official word hits differently.
The stock sold off hard and fast.
This isn’t about numbers anymore. It’s about confidence.
When a fortress stock like Berkshire gets punished like this, it signals something deeper: investors are nervous...
Buffett stepping back into the shadows feels like a metaphor for this entire tape.
If Berkshire’s not safe, what is?
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Henry Schein $HSIC had the best reaction score after reporting mixed results.
The company reported revenues of $3.17B, versus the $3.23B estimate, and earnings per share of $1.15, versus the $1.11 estimate.
Zimmer Biomet $ZBH had the worst reaction score after reporting a double beat.
The company reported revenues of $1.91B, versus the $1.90B estimate, and earnings per share of $1.81, versus the $1.77 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
BRK.B had its worst earnings reaction since 2011:
Berkshire Hathaway fell 5.1% after this earnings report, and here's why:
Operating profits declined by 14% because of significant insurance losses from wildfires in the Los Angeles area.
The company didn't repurchase any shares during the quarter, despite having over $300B in cash equivalents.
At the shareholder meeting, Warren Buffett announced that he'll be stepping down as CEO at the end of 2025.
We think this nasty earnings reaction was primarily caused by removing the "Buffett premium" from the stock.
Uncle Warren has been one of the most successful CEO's ever, and the market doesn't like the uncertainty of what the future management will do.
The stock is also finding resistance at a key Fibonacci extension level. We think this level will continue to serve as resistance.
If BRK.B is below 527, the path of least resistance is sideways to lower for the foreseeable future.
ZBH had its worst earnings reaction since 2016:
Zimmer Biomet fell 11.6% after this earnings report, and here's why:
The management team reduced its full-year 2025 adjusted EPS guidance to $7.90–$8.10, down from the previous $8.15–$8.35.
They also cut the free cash flow guidance to $750–$850 million, down from the prior $1.1–$1.2 billion.
Adjusted operating profit margin for Q1 2025 was 26.2%, down from 28.6% in the prior year.
This company is performing terribly, and the price action has reflected that...
The stock has been punished for 7 of the last 8 earnings reports.
In addition, the price has carved out a massive distribution pattern. We think the bears are poised to resolve this pattern soon.
If ZBH is below 86, the path of least resistance will shift from sideways to lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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