Holding company and industrial conglomerate Icahn (NYSE:IEP) will be reporting results tomorrow before the bell. Here’s what investors should know.
Icahn Enterprises missed analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $2.22 billion, down 25.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS 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 14.7% year on year to $2.27 billion, in line with the 14% decrease it recorded in the same quarter last year.
Analysts covering the company have generally 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 six times over the last two years.
Looking at Icahn Enterprises’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 13.7%, and Honeywell reported revenues up 6.9%, topping estimates by 2.5%. GE Aerospace traded up 4.5% following the results while Honeywell was down 7.4%.
Read our full analysis of GE Aerospace’s results here and Honeywell’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the general industrial machinery stocks have shown solid performance, the group has generally underperformed, with share prices down 7.5% on average over the last month. Icahn Enterprises is up 2.3% during the same time and is heading into earnings with an average analyst price target of $15 (compared to the current share price of $10.15).
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