Icahn Enterprises reports Q3 EPS 5c, consensus 21c

Reports Q3 revenue $2.79B, consensus $2.32B. Indicative net asset value was approximately $3.6B as of September 30, a decrease of $423M compared to June 30. Chairman Carl Icahn stated, “I strongly believe that our portfolio – both for the investment segment and the controlled businesses – has significant opportunities ahead. Rarely have I seen a stock market with such extreme valuations – with some companies trading at unjustifiable premiums and others being massively undervalued. These undervalued situations have created great opportunities for activists. To take advantage of these opportunities when they occur, we have always maintained a war chest of liquidity. As of October 31, we had approximately $2.3 billion between cash and cash equivalents at the holding company and the investment funds. I believe one such opportunity is CVI and, as such, we intend to launch a tender offer to acquire additional shares (see separate press release). To help fund this investment and take advantage of additional opportunities, both within and outside of our existing portfolio, while also maintaining the war chest, we have made the decision to decrease the quarterly distribution from $1.00 per depositary unit to $0.50 per depositary unit. At yesterday’s share price, this new distribution reflects a 16% annualized yield. We have always endeavored – at IEP, at our controlled operating subsidiaries and at the companies within our Investment segment, where we hold minority investments and often exercise influence through board representation – to deliver large returns of capital for investors. We believe our record shows that we have been largely successful in those efforts over the years. Our philosophy in that regard has not changed and, while we obviously cannot make any guarantees, we hope and believe that the actions we take today and in the near term will lead to increased capital returns to our unitholders in the future.”