Check out the companies making headlines in after-hours trading. Nucor — Shares slid 6.3% after the steelmaker’s first-quarter results fell short of estimates and it issued a lackluster second-quarter outlook. First-quarter earnings of $3.46 per share fell below the FactSet consensus estimate of $3.67 in earnings per share. Revenue of $8.14 billion was weaker than the estimated $8.26 billion. Nucor expects lower second-quarter earnings, citing “decreased earnings of the steel mills segment, primarily due to lower average selling prices partially offset by modestly increased volumes.” Cleveland-Cliffs — The steel producer lost nearly 3%. Cleveland-Cliffs’ first-quarter results fell short of analysts’ expectations, with adjusted earnings of 18 cents per share on revenue of $5.2 billion. Analysts surveyed by LSEG estimated earnings of 22 cents per share and revenue of $5.35 billion. Cadence Design Systems — Shares dropped 8.9% after the software company issued poor second-quarter guidance. Cadence Design Systems forecast second-quarter earnings per share of $1.20 to $1.24, lower than the $1.43 per share expected by analysts polled by FactSet. Revenue guidance between $1.03 billion and $1.05 billion also missed a FactSet consensus estimate of $1.11 billion. Globe Life — Shares added 1.8% after the life insurer raised its full-year earnings guidance. For the full year 2024, Globe Life sees earnings per share between $11.50 and $12.00, up from a prior range between $11.30 and $11.80. Otherwise, the firm posted first-quarter operating earnings and revenue that matched FactSet consensus estimates. Crane Company — Shares gained 3.7% after the industrial products company posted first-quarter earnings and revenue that topped analysts’ estimates. Crane saw adjusted earnings of $1.22 per share versus a FactSet consensus estimate of $1.13. Revenue of $565.3 million topped the expected $546.4 million. Alexandria Real Estate Equities — The stock advanced 1.2% after Alexandria surpassed first-quarter revenue expectations. The life sciences REIT posted revenue of $769.1 million, above the FactSet consensus estimate of $764.4 million. Packaging Corporation of America — The stock fell 1.8% in extended trading even as the maker of containerboard posted first-quarter earnings that topped estimates. Packaging Corp. earned an adjusted $1.72 per share, more than the $1.68 in earnings per share anticipated by analysts polled by FactSet. Revenue of $2.0 billion also exceeded the consensus estimate of $1.91 billion. Calix — The cloud and software provider tumbled nearly 15% after it issued weak second-quarter guidance. Calix anticipates earnings between 3 cents and 9 cents per share on revenue of $197 million to $203 million. Analysts polled by FactSet called for earnings of 24 cents a share on revenue of $232.8 million. Simpson Manufacturing — Shares slid nearly 11% after the manufacturer of structural solutions reported a decline in revenue and profit for its first quarter. Simpson earned $1.77 per share, 14.3% down from a year ago. Revenue of $530.6 million was off almost 1% from the previous year. Medpace — Shares dropped 4.3% after Medpace’s first-quarter revenue missed estimates. The clinical research organization posted $511.0 million in revenue, lower than the $512.4 million anticipated by analysts polled by FactSet. TrustCo Bank Corp. NY — The regional bank gained 3.7% after TrustCo earned 64 cents per share in the first quarter, topping a FactSet consensus estimate of 60 cents. — CNBC’s Darla Mercado contributed to this report.
OMAHA, Nebraska — Warren Buffett said Saturday his designated successor Greg Abel will have the final say on Berkshire Hathaway’sinvesting decisions when the Oracle of Omaha is no longer at the helm.
“I would leave the capital allocation to Greg and he understands businesses extremely well,” Buffett told an arena full of shareholders at Berkshire’s annual meeting. “If you understand businesses, you’ll understand common stocks.”
Abel, 61, became known as Buffett’s heir apparent in 2021 after Charlie Munger inadvertently made the revelation at the shareholder meeting. Abel has been overseeing a major portion of Berkshire’s sprawling empire, including energy, railroad and retail.
Buffett offered the clearest insight into his succession plan to date after years of speculation about the exact roles of Berkshire’s top executives after the eventual transition. The investing icon, who’s turning 94 in August, said his decision is influenced by how much Berkshire’s assets have grown.
“I used to think differently about how that would be handled, but I think that responsibility should be that of the CEO and whatever that CEO decides may be helpful,” Buffett said. “The sums have grown so large at Berkshire, and we do not want to try and have 200 people around that are managing a billion each. It just doesn’t work.”
Berkshire’s cash pile ballooned to nearly $189 billion at the end of March, while its gigantic equity portfolio has stocks worth a whopping $362 billion based on current market prices.
“I think what you’re handling the sums that we will have, you’ve got to think very strategically about how to do very big things,” Buffett added. “I think the responsibility ought to be entirely with Greg.”
While Buffett has made clear that Abel would be taking over the CEO job, there were still questions about who would control the Berkshire public stock portfolio, where Buffett has garnered a huge following by racking up huge returns through investments in the likes of Coca-Cola and Apple.
Berkshire investing managers, Todd Combs and Ted Weschler, both former hedge fund managers, have helped Buffett manage a small portion of the stock portfolio (about 10%) for about the last decade. There was speculation that they may take over that portion of the Berkshire CEO role when he is no longer able.
But it seems, based on Buffett’s latest comments, that Abel will have final decisions on all capital allocation — including stock picks.
“I think the chief executive should be somebody that can weigh buying businesses, buying stocks, doing all kinds of things that might come up at a time when nobody else is willing to move,” Buffett said.
Abel is known for his strong expertise in the energy industry. Berkshire acquired MidAmerican Energy in 1999 and Abel became CEO of the company in 2008, six years before it was renamed Berkshire Hathaway Energy in 2014.
Correction: Berkshire’s equity portfolio is worth $362 billion. A previous version misstated the figure.
Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC
OMAHA, Neb. — Warren Buffett revealed that he dumped Berkshire Hathaway’s entire Paramount stake at a loss.
“I was 100% responsible for the Paramount decision,” Buffett said at Berkshire’s annual shareholder meeting. “It was 100% my decision, and we’ve sold it all and we lost quite a bit of money.”
Berkshire owned 63.3 million shares of Paramount as of the end of 2023, after cutting the position by about a third in the fourth quarter of last year, according to latest filings.
The Omaha-based conglomerate first bought a nonvoting stake in Paramount’s class B shares in the first quarter of 2022. Since then the media company has had a tough ride, experiencing a dividend cut, earnings miss and a CEO exit. The stock declined 44% in 2022 and another 12% in 2023.
Paramount
Just this week, Sony Pictures and private equity firm Apollo Global Management sent a letter to the Paramount board expressing interest in acquiring the company for about $26 billion. The firm has also been having takeover talks with David Ellison’s Skydance Media.
Paramount has struggled in recent years, suffering from declining revenue as more consumers abandon traditional pay-TV, and as its streaming services continue to lose money. The stock is in the red again this year, down nearly 13%.
Buffett said the unfruitful Paramount bet made him think more deeply about what people prioritize in their leisure time. He previously said the streaming industry has too many players seeking viewer dollars, causing a stiff price war.
OMAHA, Neb. — Warren Buffett said that Berkshire Hathaway is looking into an investment in Canada.
“We do not feel uncomfortable in any shape or form putting our money into Canada,” he told an arena full of investors Saturday. “In fact, we’re actually looking at one thing now.”
The billionaire investor has placed bets in the country in the past. He’s previously taken a roughly $300 million position in Home Capital Group that investors took as a vote of confidence in the troubled Canadian mortgage underwriter.
The “Oracle of Omaha” said during the annual shareholder meeting that he does not expect to make significant bets outside the U.S., saying his recent investments in Japanese trading houses were a compelling exception. But Buffett noted the similarity in operations between the Canada and the U.S.
“There’s a lot of countries we don’t understand at all,” Buffett said. “So, Canada, it’s terrific when you’ve got a major economy, not the size of the U.S., but a major economy that you feel confident about operating there.”
Warren Buffett walks the floor and meets with Berkshire Hathaway shareholders ahead of their annual meeting in Omaha, Nebraska on May 3rd, 2024.
David A. Grogen | CNBC
Buffett did not reveal the specific company he’s looking at north of the border or whether it was public or private.
“Obviously, there aren’t as many big companies up there as there are in the United States,” Buffett said. “There are things we actually can do fairly well that Canada could benefit from Berkshire’s participation.”
Canada’s S&P/TSX Composite Index is up about 5% this year. The economy has large financial and commodity industries.