Icahn Enterprises (NASDAQ:IEP) Announces Quarterly Earnings Results, Misses Estimates By $0.81 EPS

Icahn Enterprises (NASDAQ:IEP) issued its quarterly earnings results on Wednesday. The conglomerate reported ($0.71) earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.81), FiscalAI reports. The business had revenue of $2.21 billion for the quarter, compared to analyst estimates of $2.33 billion. Icahn Enterprises had a negative return on equity of 9.47% and a negative net margin of 3.24%.

Here are the key takeaways from Icahn Enterprises’ conference call:

• Icahn Enterprises completed a planned leadership transition with Ted Papapostolou named CEO and Rob Flint stepping into the CFO role, with management emphasizing continuity and a disciplined capital-allocation focus.
• First-quarter NAV rose $201 million, driven by a $605 million increase in the CVI long position and CVI announced a $0.10 dividend, which management says positions CVI for potential debt reduction and shareholder returns.
• The company reported a net loss of $459 million (loss of $0.71/unit) largely due to $425 million of refining-hedge losses and $158 million of unrealized derivative losses, leaving Adjusted EBITDA attributable to IEP at a negative $216 million for Q1.
• The investment funds were +4.4% excluding refining hedges but -8.2% including them, and management increased net short notional exposure to 29% (from 13% at year-end), raising portfolio risk from hedging and short positions.
• Liquidity remains robust with the holding company holding about $2.8 billion (cash and fund investments), subsidiaries with ~$1.3 billion of cash/revolver availability, and the board kept the distribution unchanged at $0.50/unit.

Icahn Enterprises Stock Performance

IEP stock traded up $0.05 during midday trading on Friday, hitting $8.03. 374,396 shares of the stock traded hands, compared to its average volume of 918,477. The company has a debt-to-equity ratio of 1.93, a current ratio of 4.17 and a quick ratio of 4.17. The firm has a market cap of $5.11 billion, a P/E ratio of -15.41 and a beta of 0.83. Icahn Enterprises has a 1-year low of $7.08 and a 1-year high of $9.99. The stock’s fifty day simple moving average is $7.84 and its 200-day simple moving average is $7.91.

Icahn Enterprises Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Monday, May 18th will be paid a $0.50 dividend. The ex-dividend date is Monday, May 18th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 24.9%. Icahn Enterprises’s dividend payout ratio is presently -333.33%.

Institutional Investors Weigh In On Icahn Enterprises

Institutional investors have recently modified their holdings of the company. First Trust Advisors LP raised its position in Icahn Enterprises by 22.1% in the 2nd quarter. First Trust Advisors LP now owns 884,514 shares of the conglomerate’s stock valued at $7,116,000 after purchasing an additional 160,183 shares during the last quarter. Jump Financial LLC purchased a new position in shares of Icahn Enterprises during the 2nd quarter worth about $216,000. Bank of America Corp DE raised its holdings in Icahn Enterprises by 60.1% in the second quarter. Bank of America Corp DE now owns 85,223 shares of the conglomerate’s stock valued at $686,000 after buying an additional 32,007 shares during the period. Caz Investments LP increased its position in shares of Icahn Enterprises by 12.5% during the second quarter. Caz Investments LP now owns 11,254 shares of the conglomerate’s stock worth $91,000 after acquiring an additional 1,254 shares during the last quarter. Finally, BNP Paribas Financial Markets acquired a new stake in shares of Icahn Enterprises during the third quarter worth approximately $392,000. 87.09% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on IEP shares. Wall Street Zen cut shares of Icahn Enterprises from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Icahn Enterprises in a research note on Friday, April 10th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Reduce”.

About Icahn Enterprises

Icahn Enterprises L.P. (NASDAQ: IEP) is a diversified holding company based in New York City. Controlled by veteran investor Carl C. Icahn, the partnership makes strategic investments and owns wholly or partially controlled subsidiaries across a broad range of industries. With a flexible capital structure, Icahn Enterprises seeks to generate long-term value through active ownership, asset optimization and operational improvements.

The company reports its activities through five principal business segments.