Icahn Enterprises (NASDAQ:IEP) Announces Quarterly Earnings Results

Icahn Enterprises (NASDAQ:IEP) posted its earnings results on Wednesday. The conglomerate reported ($0.52) earnings per share (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 10.27% and a negative net margin of 3.24%.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 Price Performance

Shares of Icahn Enterprises stock traded down $0.23 during trading on Wednesday, hitting $7.50. 2,217,918 shares of the stock traded hands, compared to its average volume of 903,461. The stock has a market cap of $5.04 billion, a price-to-earnings ratio of -14.36 and a beta of 0.79. The company has a quick ratio of 2.67, a current ratio of 2.67 and a debt-to-equity ratio of 2.72. Icahn Enterprises has a 52 week low of $7.08 and a 52 week high of $9.52. The firm’s fifty day moving average is $7.45 and its 200-day moving average is $7.71.

Institutional Investors Weigh In On Icahn Enterprises

A number of institutional investors have recently made changes to their positions in the business. Caz Investments LP lifted its stake in Icahn Enterprises by 12.5% in the second quarter. Caz Investments LP now owns 11,254 shares of the conglomerate’s stock worth $91,000 after purchasing an additional 1,254 shares during the last quarter. Janney Montgomery Scott LLC boosted its position in Icahn Enterprises by 6.4% during the 4th quarter. Janney Montgomery Scott LLC now owns 42,307 shares of the conglomerate’s stock valued at $319,000 after buying an additional 2,548 shares during the period. Royal Bank of Canada grew its holdings in Icahn Enterprises by 12.0% in the 4th quarter. Royal Bank of Canada now owns 30,679 shares of the conglomerate’s stock worth $231,000 after acquiring an additional 3,290 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in Icahn Enterprises in the 4th quarter worth $35,000. Finally, Raymond James Financial Inc. increased its position in shares of Icahn Enterprises by 5.4% in the third quarter. Raymond James Financial Inc. now owns 113,712 shares of the conglomerate’s stock valued at $957,000 after acquiring an additional 5,848 shares during the period. Hedge funds and other institutional investors own 87.09% of the company’s stock.

Wall Street Analysts Forecast Growth

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

Icahn Enterprises Company Profile

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.