Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Berkshire Hathaway, Caterpillar, Uber, Airbnb, Realty Income, Simon Property Group, and Celsius Holdings

Let’s dive in.

Berkshire Hathaway (BRK.B)

Berkshire Hathaway's cash reserves hit a record $276.9 billion last quarter, boosted by Warren Buffett selling a significant portion of the company's stock holdings, including nearly half of its stake in Apple.

The company’s cash holdings marked a significant increase from the previous record of $189 billion in the first quarter of 2024.

Berkshire's operating earnings rose by 15% to $11.6 billion, driven by strong performance from auto insurer Geico, which saw a significant jump in underwriting earnings.

However, Berkshire's net earnings dropped to $30.3 billion from $35.9 billion a year ago, with Buffett advising against focusing on short-term investment gains.

BNSF Railway's profit remained steady at $1.6 billion, while earnings from Berkshire Hathaway Energy fell sharply to $326 million, partly due to potential wildfire liabilities.

BRK.B shares -1.3% so far this week.

Caterpillar (CAT)

Caterpillar exceeded Wall Street's profit expectations for the second quarter, with higher prices on its larger equipment offsetting weaker demand in North America.

The company's sales and revenue for the quarter declined to $16.7 billion from $17.3 billion a year earlier, aligning with forecasts. Caterpillar reported an adjusted per-share profit of $5.99, surpassing analysts' estimates of $5.54.

Sales in North America rose by 1%, while construction equipment sales were flat. However, sales dropped in the Asia-Pacific region by 9% and in Europe, Africa, and the Middle East by 16%. Latin America saw a 5% increase in sales.

The overall decrease in sales volume was attributed to changes in dealer inventories, which declined compared to the previous year's increase.

Caterpillar now expects both Q3 and full year revenue to be slightly lower than 2023 sales numbers.

CAT shares are +1.8% so far this week.

Uber Technologies (UBER)

Uber's second-quarter earnings surpassed Wall Street expectations, sending the stock higher.

The company’s revenue rose 16% to $10.57 billion compared to $9.23 billion a year earlier. The company reported a net income of $1.02 billion, partly due to a $333 million pretax benefit from revaluations of its equity investments.

Uber's mobility unit saw a 23% increase in gross bookings to $20.6 billion, delivery bookings rose 16% to $18.1 billion, while freight bookings remained flat at $1.27 billion. 

The number of monthly active platform consumers (MAPCs) reached 156 million, with 2.77 billion trips in the quarter, up from 137 million MAPCs and 2.28 billion trips a year ago.

For the third quarter, Uber anticipates bookings between $40.25 billion and $41.75 billion and adjusted earnings between $1.58 billion and $1.68 billion, with the midpoint slightly above analysts' expectations.

UBER shares are +9.6% so far this week.

Airbnb (ABNB)

Airbnb's second-quarter earnings missed analyst expectations, and the company warned of slowing demand from U.S. customers.

Revenue grew 11% year-over-year to $2.75 billion, but net income dropped 15% to $555 million, or $0.86 per share, compared to $650 million, or $0.98 per share, a year ago.

Gross bookings value increased 11% to $21.2 billion, with users booking 125.1 million Nights and Experiences, the highest ever for a second quarter. Growth was strongest in Latin America and Asia-Pacific, with bookings up 17% and 19% respectively.

The average daily rate rose 2% to $169.53, but the net income margin decreased to 20% from 26% a year earlier.

For the third quarter, Airbnb projected revenue between $3.67 billion and $3.73 billion but noted a potential slowdown in growth and shorter booking lead times, especially from U.S. guests.

ABNB shares are -12.7% so far this week.

Realty Income (O)

Realty Income slightly exceeded Wall Street expectations for its second-quarter funds from operations (FFO), benefiting from higher rental revenue at its properties.

The real estate investment trust (REIT), which owns over 13,400 properties in the U.S. and Europe, reported total revenue of $1.34 billion, surpassing analysts' estimates of $1.25 billion. The company posted adjusted FFO of $1.06 per share, just above the expected $1.05.

Despite rising property management costs, Realty Income increased rental rates and invested in high-growth properties to support its FFO.

Same-store rental revenue for the quarter was $1 billion, up slightly from $998.2 million a year earlier.

The company lowered its 2024 net income forecast to between $1.21 and $1.30 but maintained its annual adjusted FFO expectations.

O shares are +1.8% so far this week.

Simon Property Group (SPG)

Simon Property Group missed second-quarter estimates for funds from operations (FFO) and lowered its annual net income forecast.

The commercial real estate investment trust (REIT), which has a diverse tenant portfolio including brands like Lululemon, Nike, and Cheesecake Factory, reported FFO of $2.90 per share, below the expected $2.94 per share.

However, it posted higher-than-expected revenue of $1.46 billion, surpassing analysts' estimate of $1.30 billion.

The company revised its annual net income forecast to a range of $7.37 to $7.47 per share, down slightly from the previous forecast. Despite this, Simon Property Group raised the lower end of its annual FFO forecast to between $12.80 and $12.90 per share, up from the earlier range of $12.75 to $12.90 per share.

SPG shares are +3.0% so far this week.

Celsius Holdings (CELH)

Celsius Holdings reported strong quarterly results, exceeding analyst expectations.

The company earned $0.28 per share, beating the estimated $0.23 per share and up from $0.17 per share a year ago. Revenue for the quarter was $401.98 million, a 23% increase from the previous year and above the $391.1 million estimate.

In North America, revenue was $382.35 million, up 23% year-over-year and above the estimated $368.17 million.

International revenue grew by 34.1% to $19.6 million, surpassing expectations. However, Asia-Pacific revenue declined by 46.5% to $0.86 million, below the $1.81 million estimate. Europe revenue increased by 40.1% to $16.68 million, although it fell short of the $20.24 million estimate.

CELH shares are -6.4% so far this week.

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Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.