Holding company and industrial conglomerate Icahn (NYSE:IEP) will be reporting results tomorrow before market hours. Here’s what investors should know.
Icahn Enterprises beat analysts’ revenue expectations by 13.9% last quarter, reporting revenues of $2.55 billion, flat year on year. It was a mixed quarter for the company, with a miss of analysts’ earnings estimates.
Is Icahn Enterprises a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Icahn Enterprises’s revenue to decline 22.5% year on year to $2.32 billion, a further deceleration from the 12.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Icahn Enterprises has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Icahn Enterprises’s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 15.9%, and Kadant reported revenues up 11.2%, topping estimates by 2%. Luxfer traded up 14.4% following the results while Kadant was also up 4.6%.
Read our full analysis of Luxfer’s results here and Kadant’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 6.3% on average over the last month. Icahn Enterprises is down 4.5% during the same time and is heading into earnings with an average analyst price target of $25 (compared to the current share price of $13.10).
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