Icahn Enterprises Q2 net loss widens, net asset value falls
IEP•Outlook
- Icahn Enterprises says it is right-sizing hedge portfolio to reduce volatility and improve consistency
- Company sees current market environment as breeding attractive opportunities for refineries such as CVR
- Icahn Enterprises notes strong rebound in refining investment during July, highlighting temporary nature of recent losses
Overview
- US diversified holding company reported Q2 revenue up yr/yr, net loss widened
- Q2 adjusted EBITDA loss deepened to $134 mln from $40 mln a year ago
- Net asset value fell $765 mln from prior quarter, mainly on CVR and hedge losses
Key Details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $3 bln | $2.05 bln (1 Analyst) |
| Q2 Net Income | Miss | -$355 mln | $73 mln (1 Analyst) |
| Q2 Net Asset Value | $2.6 bln |
The stock recently traded at 61 times the next 12-month earnings vs. a P/E of 16 three months ago.
Result Drivers
- CVR Energy losses - Co said decrease in net asset value was mainly due to a $435 mln drop in value of long position in CVR Energy
