How Has Icahn Enterprises’ Stock Fared ahead of 2Q16 Earnings?



Icahn Enterprises’ stock performance

Icahn Enterprises’ (IEP) stock fell 14.4% from April 1 to July 19, 2016. On July 20, the stock was trading at $54.0. The S&P index rose 6.3% from the beginning of 2Q16 through July 19, 2016. Icahn Enterprises’ peers in the financial (XLF) investment space include Berkshire Hathaway (BRK-B), Leucadia National Corporation (LUK), and Loews Corporation. BRK-B, LUK, and L generated returns of 3.5%, 12.2%, and 8.2%, respectively, from April 1 to July 20, 2016.

Icahn Enterprises’ stock has been impacted by macroeconomic concerns, especially in the oil and gas (XOP) segment and weak industrials (XLI). IEP has exposure to ten operating segments and is undergoing restructuring wherever essential.

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What has impacted Icahn Enterprises’ stock?

From January 1 to July 20, 2016, Berkshire Hathway, Leucadia National, and Loews Corporation clearly outperformed Icahn Enterprises. BRK-B, LUK, and L generated positive returns of 12.3%, 5.8%, and 9.1%, respectively. IEP generated a negative return of 11.5%.

IEP has largely underperformed its peers as it reported a loss in the last three quarters, missing Wall Street analysts’ expectations for profits.

In the next part of this series, we’ll analyze why Carl Icahn is acquiring the remaining 18% stake in Federal-Mogul.


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