Icahn Enterprises (NASDAQ:IEP) Posts Quarterly Earnings Results, Misses Estimates By $0.63 EPS

Key Points

• Icahn Enterprises reported a $0.52-per-unit loss, missing the $0.11 consensus estimate by $0.63. Revenue reached $2.98 billion, above the $2.04 billion analyst forecast, but the net loss widened to $355 million from $165 million a year earlier.
• Indicative net asset value fell by $765 million in the quarter, while investment funds returned negative 7.7% excluding refining hedges. IEP agreed to sell Pep Boys for $700 million, with proceeds expected to improve financial flexibility ahead of 2027 debt maturities.
• The Energy segment provided a bright spot, with Adjusted EBITDA rising to $102 million from $40 million year over year on high refinery utilization and strong fertilizer demand. However, analysts maintain a generally negative view, with the stock carrying an average “Reduce” rating.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) issued 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 net margin of 3.24% and a negative return on equity of 10.27%. The firm had revenue of $2.98 billion during the quarter, compared to analyst estimates 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 Performance

Shares of IEP stock traded down $0.23 during trading hours on Wednesday, hitting $7.50. 2,217,918 shares of the company were exchanged, compared to its average volume of 903,461. The stock has a market capitalization of $5.04 billion, a price-to-earnings ratio of -14.36 and a beta of 0.79. The firm has a fifty day simple moving average of $7.45 and a 200 day simple moving average of $7.71. The company has a current ratio of 2.67, a quick 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.

Institutional Investors Weigh In On Icahn Enterprises

Several large investors have recently added to or reduced their stakes in the company. Invesco Ltd. bought a new position in Icahn Enterprises in the 4th quarter worth approximately $1,074,000. Icahn Carl C raised its holdings in Icahn Enterprises by 5.9% during the 4th quarter. Icahn Carl C now owns 549,400,539 shares of the conglomerate's stock valued at $4,147,974,000 after acquiring an additional 30,467,595 shares during the period. Jump Financial LLC purchased a new stake in shares of Icahn Enterprises during the fourth quarter worth $1,353,000. Captrust Financial Advisors purchased a new stake in shares of Icahn Enterprises during the fourth quarter worth $313,000. Finally, Royal Bank of Canada boosted its holdings in shares of Icahn Enterprises by 12.0% in the fourth 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 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 report on Wednesday, July 8th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. 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.

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