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Can Icahn Enterprises Beat Wall Street’s Expectations for 2Q16?

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Icahn Enterprises to declare 2Q16 results

Icahn Enterprises (IEP) is scheduled to release its 2Q16 earnings on August 4, 2016. Several other financial (XLF) investment companies are scheduled to release their earnings in August. Berkshire Hathaway (BRK-B), Leucadia National Corporation (LUK), and Loews Corporation (L) are scheduled to declare their earnings on August 8, August 3, and August 1, respectively.

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What should investors look for in Icahn Enterprises’ 2Q16 results?

In IEP’s 2Q16 results, investors should closely watch for growth in total revenues as well as segmental revenues. At the same time, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin will play an important role in a slow-growth environment. Analyzing segments that have given a boost to IEP’s revenues and profitability will be important. Since Icahn Enterprises doesn’t give forward guidance because of its diverse portfolio holdings, investors should closely analyze the company’s indicative net asset value and its past trends.

Icahn Enterprises’ business so far

Icahn Enterprises’ 1Q16 revenue stood at $3.1 billion, nearly 26.6% below the market consensus of $4.3 billion. IEP’s adjusted EPS (earnings per share) stood at -$6.21, below the consensus estimate of $1.21 per share and below its 1Q15 EPS of $1.27.

In the next part of this series, we’ll cover market expectations for Icahn Enterprises’ revenues in 2Q16.

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