Icahn Enterprises (NASDAQ:IEP) Announces Earnings Results, Misses Expectations By $0.63 EPS

Icahn Enterprises (NASDAQ:IEP) released its earnings results on Wednesday. The conglomerate reported ($0.52) EPS for the quarter, missing the consensus estimate of $0.11 by ($0.63), FiscalAI reports. Icahn Enterprises had a negative return on equity of 16.65% and a negative net margin of 4.81%.The firm had revenue of $2.98 billion during the quarter, compared to analysts’ expectations of $2.04 billion.

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

• Indicative NAV fell $765 million in Q2, primarily due to a $243 million decline in the investment funds and a $435 million decline in CVI. The funds returned negative 7.7% excluding refining hedges and negative 10.9% including them.
• IEP agreed to sell Pep Boys for $700 million, subject to customary adjustments, with closing expected in Q3. Proceeds are expected to provide financial flexibility, including for addressing upcoming 2027 debt maturities, while IEP will retain real estate, franchise businesses, and certain leases.
• The Energy segment’s Adjusted EBITDA rose to $102 million from $40 million year over year, supported by refining utilization above 98% and strong fertilizer demand. CVR also declared a $0.10-per-share dividend.
• IEP reported a Q2 net loss of $355 million, or $0.52 per unit, compared with a $165 million loss in the prior-year quarter, while Adjusted EBITDA shifted to a $134 million loss from $40 million of positive EBITDA.
• Pharma Adjusted EBITDA declined by $14 million because of lower anti-obesity drug sales amid generic competition and higher pivotal-trial R&D costs; food packaging and home fashions also posted smaller EBITDA declines.

Icahn Enterprises Stock Down 1.4%

Shares of IEP traded down $0.10 during trading on Friday, reaching $7.53. The company’s stock had a trading volume of 942,671 shares, compared to its average volume of 905,251. Icahn Enterprises has a twelve month low of $7.08 and a twelve month high of $9.52. The company has a quick ratio of 2.67, a current ratio of 2.67 and a debt-to-equity ratio of 2.72. The company has a market cap of $5.06 billion, a price-to-earnings ratio of -10.17 and a beta of 0.79. The company has a fifty day moving average of $7.45 and a two-hundred day moving average of $7.71.

Icahn Enterprises Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Monday, August 17th will be issued a dividend of $0.50 per share. The ex-dividend date is Monday, August 17th. This represents a $2.00 annualized dividend and a yield of 26.6%. Icahn Enterprises’s payout ratio is currently -270.27%.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Icahn Enterprises in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce”.

Institutional Inflows and Outflows

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

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.