Carl Icahn Led Icahn Enterprises Stock Plunges - What's Going On?

Icahn Enterprises L.P. IEP, the company controlled by activist investor Carl Icahn, reported a second-quarter revenue decline of 27.5% year-on-year to $2.54 billion, missing the consensus of $2.66 billion. EPS loss of $(0.72) missed the consensus of $0.25.

The adjusted EBITDA was $34 million compared to $126 million the prior year.

Also Read: Icahn Enterprises Stock Nosedives Over Ponzi Scheme Allegations: 5 Key Takeaways From Hindenburg Short Report

The company's second-quarter loss doubled to $(269) million, or $(0.72) per depositary unit.

Indicative net asset value decreased to $5.0 billion as of June 30, 2023, compared to $5.6 billion as of December 31, 2022.

Carl Icahn, Chairman of IEP, said: "I believe the second quarter partially reflected the impact of short-selling on companies we control or invest in, which I attribute to the misleading and self-serving Hindenburg report concerning our company. It also reflected the size of the hedge book relative to our activist strategy. 

"Subsequent to the quarter, I have entered into a three-year term loan agreement with my personal lenders (see Form 8-K filed on July 10, 2023), which in my opinion, has significantly diffused the effects of the misleading Hindenburg report and focused on our activist strategy and reduced our hedge book."

On August 2, 2023, the Board of Directors of the general partner of Icahn Enterprises declared a quarterly distribution of $1.00 per depositary unit, down from the prior quarter of $2.00 per depositary unit.

Price Action: IEP shares traded lower by 30.8% at $22.60 on the last check Friday.

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