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Sep 30, 2024
Icahn Enterprises Q3 2024 Earnings Report
Icahn Enterprises' financial performance remained positive with revenue of $2.8 billion and a net income of $22 million, although adjusted EBITDA decreased compared to the same period last year.
Key Takeaways
Icahn Enterprises reported revenues of $2.8 billion and net income of $22 million, or $0.05 per depositary unit, for the three months ended September 30, 2024. Adjusted EBITDA was $183 million. The company decreased its quarterly distribution from $1.00 to $0.50 per depositary unit to fund investments and maintain liquidity.
Revenues for Q3 2024 were $2.8 billion, compared to $3.0 billion for Q3 2023.
Net income for Q3 2024 was $22 million, or $0.05 per depositary unit, compared to a net loss of $6 million, or a loss of $0.01 per depositary unit for Q3 2023.
Adjusted EBITDA for Q3 2024 was $183 million, compared to $243 million for Q3 2023.
The company decreased the quarterly distribution to $0.50 per depositary unit to fund investments and maintain a war chest of liquidity.
Forward Guidance
Icahn Enterprises believes its portfolio has significant opportunities ahead, particularly in undervalued situations that create opportunities for activists. The company intends to launch a tender offer to acquire additional shares of CVI and has decreased the quarterly distribution to fund this investment and maintain liquidity.
Positive Outlook
- Portfolio seen as having significant opportunities.
- Belief that actions taken will lead to increased capital returns to unitholders.
- Intention to launch a tender offer to acquire additional shares of CVI.
- Maintaining a war chest of liquidity to take advantage of opportunities.
- Early signs of recovery in Automotive Services business after leadership change.
Challenges Ahead
- Decrease in quarterly distribution from $1.00 to $0.50 per depositary unit.
- Decrease in indicative net asset value driven by decline in CVI and Automotive Services.
- Extreme valuations in the stock market with some companies trading at unjustifiable premiums.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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