Despite facing a surprise Q3 loss, Icahn Enterprises LP (NASDAQ:IEP) saw an unexpected stock jump today. The holding firm, led by renowned activist investor Carl Icahn, announced a Q3 loss of 1 cent per share on $3 billion in revenue. This sharply contrasted with FactSet analysts' estimate of a 34-cent per share profit on a $2.7 billion revenue.
The company's Q3 2023 revenues represented a decrease from $3.4 billion in Q3 2022. Net losses stood at $6 million or $0.01 per depositary unit, significantly lower than the previous year's losses of $123 million. Adjusted EBITDA increased to $272 million from $70 million in Q3 2022.
For the nine-month period ending September 30, 2023, revenues decreased to $8.2 billion from $11 billion in the same period in 2022 and net losses reached $545 million or a loss of $1.47 per depositary unit. The indicative net asset value reflected non-recurring losses from the Auto Plus bankruptcy included in year-to-date figures.
Despite the financial challenges, Icahn Enterprises held its distribution steady, declaring a quarterly distribution of $1.00 per depositary unit with a record date of November 17, and payment scheduled for December 27, 2023. This move is seen as reassuring for shareholders after the last quarter's dividend was cut in half.
This development follows an earlier share decline due to a short-seller report, but the company's decision to maintain its distribution appears to have sparked renewed investor confidence as evidenced by today's stock jump. Further financial details can be found in the company's 8-K earnings release.
InvestingPro Insights
Drawing from the latest InvestingPro data, Icahn Enterprises LP has a market capitalization of $7770M USD. The P/E Ratio stands at -6.63, indicating that the company is currently unprofitable. In the last twelve months as of Q2 2023, the revenue was reported at 11.67B USD, which is a -7.79% growth rate.
InvestingPro Tips highlight that the company has maintained dividend payments for 19 consecutive years, a reassuring factor for investors. However, the company is expected to face a sales decline in the current year. Additionally, the company's liquid assets exceed short term obligations, which could be a positive sign for its financial stability.
InvestingPro offers numerous additional tips and insights for Icahn Enterprises LP, providing a comprehensive view of the company's performance.
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