Icahn Enterprises LP (NASDAQ:IEP) shares traded lower on Friday.
The company reported third-quarter earnings per unit of 5 cents, missing the street target of 21 cents. Quarterly revenue of $2.22 billion was below analysts’ consensus estimate of $2.32 billion.
As of Oct. 31, the company had approximately $2.3 billion in cash and equivalents in its holding company and investment funds.
In the third quarter, net income attributable to IEP was $22 million, an improvement of $28 million compared to the same quarter last year. Adjusted EBITDA for the third quarter was $183 million, compared to $243 million in the prior year quarter.
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IEP has proposed that its subsidiary, IEH, would make a public offer to purchase up to 15 million additional shares CVR Energy Inc. (NYSE:CVI) common stock at $17.50 per share.
This offer price represents a 6% premium to CVR Energy’s closing price on November 7, 2024, and a 5% premium to the average price of CVR Energy shares over the past seven trading days.
IEP said CVR Energy shares are undervalued and sees this as a good investment opportunity. IEP currently owns, directly and indirectly, 66.3% of the outstanding shares of CVR Energy’s common stock. If the proposed tender offer were fully or oversubscribed, IEP would own 81.3% of CVR Energy’s common shares.
As of September 30, Icahn Enterprises’ indicative net asset value decreased by $423 million compared to June 30. This decrease was primarily due to a $249 million decrease in CVR, a $193 million decrease in Automotive Services, and a $113 million distribution to shareholders. despite a $192 million gain in the mutual funds.
Reduces distribution: On November 6, the Board of Directors of the general partner of Icahn Enterprises declared a quarterly distribution of $0.50 per custody unit, to be paid on or about December 26. The company reduced its quarterly distribution from $1.00 per custody unit.
Price promotion: IEP shares are trading 7.10% lower at $11.98 at last check on Friday.
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