Shares Of Icahn Enterprises Fell 9% After The Company Reported A First-Quarter Loss

Icahn Enterprises L.P., the investment company owned by the billionaire activist investor Carl Icahn, announced on Wednesday that it incurred a loss in the first quarter, marking a reversal from the profit it recorded during the same period a year ago. 

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The company, based in Sunny Isles Beach, Florida, reported a net loss of $270 million, or 75 cents per depositary unit, compared to the $323 million income, or $1.06 a unit, it earned last year. This led to a more than 7% pre-market drop in its stock.

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However, Icahn Enterprises' revenue fell less than expected, coming in at $2.758 billion compared to last year's $2.968 billion.

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In a FactSet consensus, analysts predicted an income of 19 cents for the company. Despite the loss, the company's board approved a quarterly distribution of $2 per depositary unit. 

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Icahn Enterprises also revealed that a "significant tenant of a commercial high-rise property" was notified of default for non-payment after the quarter's end. 

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The tenant failed to cure the default status and the lease was terminated, causing the company to consider it a "triggering event for potential impairment." The company plans to assess the long-lived asset for any non-cash impairment charges during the second quarter of 2023.

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Icahn Enterprises' real estate segment had a net asset value of $457 million at the end of the quarter, while the entire company's indicative net asset value remained flat at $5.6 billion as of March 31. Icahn Enterprises' stock has fallen by 25% since the beginning of the year.

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 A recent short-selling report by Hindenburg Research accused the company of overstating its assets' value and revealed Icahn's personal indebtedness. 

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Icahn, in response, accused Hindenburg of being self-serving and emphasized that the company had approximately $2 billion in cash and cash equivalents on its balance sheet to execute its strategy.

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