Why Was Icahn Enterprises’ Stock Down after 2Q16 Earnings?



Market reaction to Icahn Enterprises’ 2Q16 earnings

Icahn Enterprises (IEP) announced its 2Q16 results on August 4, 2016, before markets opened, sending the shares down in early trading. The stock dipped by 4.1% from the opening price of $55.60 to $53.31 by the day’s close.

On a yearly basis from August 5, 2015, to August 5, 2016, IEP has fallen by 26.2%, as compared to the 8.8% gain seen by the broad-based S&P 500 Index (SPY). On a YTD (year-to-date) basis as of August 5, 2016, IEP has declined by 8.2%.

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What impacted Icahn Enterprises 2Q16 EPS?

The net loss attributable to Icahn Enterprises in 2Q16 was $69 million, as compared to net income of $212 million in 2Q15. On a quarterly basis, IEP’s adjusted EPS (earnings per share) stood at $0.50, below consensus of $1.22 per share. In 2Q15, its EPS was $1.68. In 2Q16, EPS were unfavorably impacted by Icahn’s short-term positions in the Investment segment.

On a half yearly basis, IEP’s adjusted EPS stood at $7.4 billion, as compared to $9.4 billion in 1H15, which is a 21.2% decline.

Icahn’s peers

Leucadia’s (LUK) 2Q16 EPS stood at $0.15 per share, as compared to $0.07 in 2Q15. Loews’ (L) 2Q16 EPS was at $0.59 per share up 30.7% as compared to $0.45 in 2Q15. Berkshire Hathaway’s (BRK-B) 2Q16 EPS rose by 23.3% over 2Q15.

Continue to the next part for more on Icahn Enterprises’ 2Q16 revenues.


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