IEP - Icahn Enterprises L.P.
50.50 +0.55 (1.10%)
After hours: 6:01PM EDT
Chart Events
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 49.23 |
| Open | 50.24 |
| Bid | 48.93 x 1200 |
| Ask | 50.49 x 1400 |
| Day's Range | 49.70 - 50.48 |
| 52 Week Range | 34.00 - 79.37 |
| Volume | 99,810 |
| Avg. Volume | 177,275 |
| Market Cap | 10.705B |
| Beta (5Y Monthly) | 1.31 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -9.94 |
| Earnings Date | Aug 04, 2020 - Aug 10, 2020 |
| Forward Dividend & Yield | 8.00 (16.56%) |
| Ex-Dividend Date | May 18, 2020 |
| 1y Target Est | 70.00 |
- Moody's
CVR Partners, LP -- Moody's revises CVR Partners' outlook to negative, ratings affirmed
Moody's Investors Service, ("Moody's") affirmed all ratings for CVR Partners, LP ("CVR"); including the B2 Corporate Family Rating ("CFR"), its B2-PD probability of default rating and the B2 senior secured notes rating. Moody's changed the rating outlook to negative, based on the expectation that projected lower prices for nitrogen fertilizers will lead to weaker credit metrics despite a strong US spring planting season.
- Bloomberg
O.J., Accounting Fraud, Icahn: The Story of Hertz Going Bust
(Bloomberg) -- The short version of Hertz Global Holdings Inc.’s bankruptcy story goes something like this: Global pandemic obliterates the travel business and lands an iconic 102-year-old company in court to seek protection from creditors.The long version is a fable about what happens when a company relies on accounting and consolidation to keep shareholders happy. It’s a tale of lurching from one CEO to another and management teams failing to stay attuned to consumer tastes.Enterprise Holdings Inc. and Avis Budget Group Inc. are suffering through the same Covid-19 drought, but Hertz’s own bad decisions and hard luck made it vulnerable at the worst time. One former top executive summed up its plight as a slow-moving train wreck.On its Chapter 11 petition, Hertz listed $25.8 billion in assets. It has over $1 billion in cash and $24.4 billion of debt. A company that began with a dozen Ford Model Ts and was taken for a spin by General Motors, Ford Motor and a group of private equity firms as parents over the decades now faces an uncertain fate that will be decided in a Delaware court.O.J., EnterpriseNo telling of Hertz’s history is complete without mention of perhaps the most disastrous end to a major celebrity-endorsement deal of all time.Hertz was owned by Ford in the summer of 1994 when police pursued O.J. Simpson in a white Bronco SUV for the murder of his ex-wife, Nicole Brown Simpson, and her friend Ron Goldman. As a Buffalo Bills running back two decades earlier, Simpson raced through airports and past children screaming “Go, O.J., go!” on his way into the company’s rental cars.The television ads were effective at emphasizing speedy service and boosted business. While the relationship was less beneficial to the company as their 19-year link wore on, Hertz stood by Simpson’s side even after a January 1989 charge for assaulting his wife. She personally convinced then-Chairman Frank Olson to stick with the star, the Washington Post reported.Hertz had some good years after the so-called trial of the century that ended in Simpson’s acquittal. But in November 1994, the same month that the jury was sworn in, the trade publication Auto Rental News ranked Enterprise its new No. 1 by fleet size and number of offices.Private Equity EraWhile Hertz was by some measures slipping in the rental industry pecking order, it was still earning tidy profits for an otherwise struggling Ford. The automaker sold the company in 2005 to two private equity firms and Merrill Lynch & Co.’s buyout unit for about $15 billion.The following year, Hertz poached the top executive at auto-parts maker Tenneco Inc., Mark Frissora, to be CEO and lead the company through a re-listing. Frissora cut costs, eliminated thousands of jobs and was paid handsomely. His $19.2 million compensation package in 2006 was more than Ford awarded its CEO last year.After weathering the global financial crisis, Hertz started pursuing a costly and drawn-out deal for Dollar Thrifty Automotive Group Inc. It tried buying the company for $1.2 billion in 2010 but ultimately paid $2.6 billion after a two-year bidding war with its rival Avis.The deal boosted Hertz’s market share by rounding out its business-traveler stronghold with a greater presence in the budget-minded leisure segment. But the acquisition also added to Hertz’s debt pile, which already was substantial thanks to the earlier leveraged buyout. The company ended 2012 with $20.8 billion in total liabilities.Dollar ShortProblems abounded with integrating the two companies, according to Maryann Keller, a longtime auto-industry consultant who was on Dollar Thrifty’s board at the time of the acquisition.The two had different computer systems that couldn’t talk to each other. Frissora lost some talented executives by moving the two companies, which had been based in New Jersey and Oklahoma, to a new headquarters in Florida.Hertz hoped to combine airport lots for the three brands to save money, but wasn’t able to do so at many locations. The company also found that Dollar Thrifty had let the tires on its cars get thinner than Hertz allowed, and many had to be replaced at a cost of $30 million. Neither problem surfaced during due diligence.In the end, a merger that was supposed to save Hertz about $100 million in the first year ended up costing it another $70 million, two people familiar with the matter said.Accounting IssuesAs expenses related to the acquisition dragged on earnings, Frissora sought other ways to keep profit up.To tamp down on vehicle depreciation, the biggest source of costs for rental companies, Frissora tried keeping cars longer, some for as many as 50,000 miles, long past the industry norm of about 30,000, former executives told Bloomberg News. His plan was to put older vehicles into the fleets of the company’s budget brands: Dollar, Thrifty and Firefly.Because cars depreciate most in their first year, holding on to them longer would slow the rate the company had to show on its books. But not enough of the older models made it out of Hertz’s fleet, and business travelers were turned off by the aging selection of rides to choose from, Keller said.And according to the Securities and Exchange Commission, the company committed fraud. The regulator said that from February 2012 through March 2014, Hertz materially misstated pretax income due to accounting errors. Investors including billionaire Carl Icahn pushed for Frissora’s ouster in September 2014, and the company restated results the following year.Hertz settled with the SEC for $16 million and Frissora wasn’t charged. A spokesman for the former CEO said he presided over operational improvements during his eight-year tenure. Hertz’s 2015 earnings restatements have no bearing on the company’s current financial situation and Frissora didn’t direct any improper accounting or engage in any wrongdoing, the spokesman said.Still, Hertz sued Frissora and three other ex-senior managers last year, seeking to claw back $70 million in bonuses over the executives’ roles in the accounting scandal. Frissora and the other executives filed their own suits in Delaware Chancery Court seeking to force the company to cover their legal bills in the clawback fight. Judge Kathaleen S. McCormick granted those requests last year. One executive reached a settlement for undisclosed terms.In an amended complaint filed in federal court in New Jersey this month, Hertz demanded that Frissora and former general counsel Jeffrey Zimmerman hand over $56 million in incentive pay because of their involvement in accounting errors that overstated Hertz’s pre-tax income. That led to the $200 million restatement and the duo’s ouster, according to court filings.Icahn EntersIcahn entered the picture after a 2014 dinner in New York that an industry analyst had with Dan Ninivaggi, who was then CEO of Icahn Enterprises. Ninivaggi was told Hertz had a good brand and solid foundation but needed discipline and better management. Icahn was swayed and bought up shares. By year-end, his holding was worth more than $1.13 billion, according to data compiled by Bloomberg.The head of Hertz’s equipment-rental business took over the company for a few months before a fateful decision. Rather than hire former Dollar Thrifty CEO Scott Thompson to run the company, Icahn went with John Tague, an ex-COO of United Airlines.Icahn “didn’t put the best people in place” and “had a revolving door of managers,” said Keller, who believes Hertz would not be in the position it’s in today if it had hired Thompson. Icahn didn’t respond to requests for comment.Tague updated Hertz’s fleet but did so with passenger cars just as U.S. consumers began fleeing sedans for sport-utility vehicles. Consumers went looking to other rental counters for SUVs, and depreciation costs mounted as sedans retained less of their value. He also tried raising prices, figuring the industry’s oligopoly would follow suit. But Enterprise and Avis didn’t and instead picked off more of Hertz’s customers.In an interview Saturday, Tague said growth wasn’t his priority. He started tilting the fleet mix toward SUVs, but had a lot else on his plate: finishing the accounting investigation and restating earnings, integrating Dollar Thrifty, rebuilding the management team hollowed out by the Florida move and spinning off the equipment-rental business.“Upon my arrival, it was clear that many things had to be addressed with a sense of urgency,” he said in a phone interview. “That’s what I undertook.”Future JourneysTague retired at the beginning of 2017 and was replaced by Kathryn Marinello, who had been on the board of GM and truckmaker Volvo AB. The results of her early efforts to shrink the fleet and further the shift toward SUVs were undercut by the emergence of Uber Technologies Inc. and Lyft Inc.Marinello did make progress. Hertz reported nine consecutive quarters of earnings growth and expanded revenue in 10 straight.But when the pandemic decimated the rental industry, Hertz still had too little cash and a mountain of debt. Marinello resigned May 16, less than a week before the bankruptcy filing.“With the severity of the Covid-19 impact on our business and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” Hertz’s new CEO Paul Stone said in a statement announcing the company’s bankruptcy. “Our loyal customers have made us one of the world’s most iconic brands, and we look forward to serving them now and on their future journeys.”The main bankruptcy case is In RE: The Hertz Corporation, 20-111218, U.S. Bankruptcy Court for the District of Delaware (Wilmington)(Updates with clawback lawsuits against former executives starting in 21st paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Thomson Reuters StreetEvents
Edited Transcript of IEP earnings conference call or presentation 8-May-20 2:00pm GMT
Q1 2020 Icahn Enterprises LP Earnings Call
- Moody's
Viskase Companies, Inc. -- Moody's downgrades Viskase CFR to Caa2; outlook negative
Moody's Investors Service ("Moody's") downgraded Viskase Companies, Inc.'s ("Viskase") Corporate Family Rating (CFR) to Caa2 from B3 and its Probability of Default Rating to Caa2-PD from B3-PD. Moody's also downgraded the rating on the company's senior secured term loan due January 2021 to Caa3 from B3.
- Motley Fool
Icahn Enterprises L.P. (IEP) Q1 2020 Earnings Call Transcript
Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries. Joining me on today's call is SungHwan Cho, our Chief Financial Officer.
- GuruFocus.com
US Indexes Close Higher Friday and for the Week
Nasdaq has a gain of 1.66% for the year Continue reading...
- GlobeNewswire
Icahn Enterprises L.P. Reports First Quarter 2020 Financial Results
First quarter net loss attributable to Icahn Enterprises of $1.4 billion, or a loss of $6.34 per depositary unit Board approves quarterly distribution of $2.00 per depositary.
- Barrons.com
Who Can Beat Warren Buffett And Carl Icahn? The Average Fund Manager.
The average fund manager can take pride in this: Over the past 10 years, he or she has surpassed the returns of investing legends Warren Buffett and Carl Icahn.
- GlobeNewswire
Icahn Enterprises L.P. Announces Q1 2020 Earnings Conference Call
Icahn Enterprises L.P. (IEP) announced today that it will discuss its first quarter 2020 results on a conference call and webcast on Friday, May 8, 2020 - 10:00 a.m. Eastern Time. The webcast can be viewed live on Icahn Enterprises L.P.'s website at www.ielp.com. Icahn Enterprises L.P., a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion.
- Moody's
Icahn Enterprises L.P. -- Moody's affirms IEP's ratings; outlook changed to negative
Moody's Investors Service, ("Moody's") has affirmed Icahn Enterprises LP's (IEP) Ba3 corporate family rating (CFR), Ba3-PD probability of default rating and Ba3 guaranteed senior unsecured debt ratings. For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.
- American City Business Journals
Analyst: Oxy-Icahn deal falls in the middle ground
The deal struck between Houston-based upstream giant Occidental Petroleum Corp. (NYSE: OXY) and billionaire activist investor Carl Icahn doesn’t represent a total victory — or a total loss — for either side. Rather, the deal represents a middle ground that probably works a little for both sides of the fight, said Andrew Dittmar, senior analyst for Enverus. “Obviously, Oxy would probably have preferred to not have to necessarily engage with them at all,” Dittmar said.
- American City Business Journals
Occidental Petroleum and activist investor Carl Icahn reach a deal
Carl Icahn's battle with Occidental Petroleum is over, with Icahn getting to add three board directors to Occidental's board.
- American City Business Journals
Occidental Petroleum, Carl Icahn reach deal over board directors, other changes
Houston-based Occidental Petroleum Corp. (NYSE: OXY) and billionaire activist investor Carl Icahn have reached an agreement ending a nearly year-long conflict.
- GlobeNewswire
Icahn Enterprises L.P. Issues Statement Regarding Quarterly Distribution
In response to investor inquiries and market speculation, Icahn Enterprises L.P. (IEP) today confirmed that it is the intention of the Board of Directors of the general partner of Icahn Enterprises to maintain the regular quarterly distribution, in the amount of $2.00 per depositary unit, for the foreseeable future. Icahn Enterprises and its subsidiaries maintain ample liquidity to take advantage of attractive opportunities for their respective businesses.
- Insider Monkey
Icahn Enterprises LP (IEP): Are Hedge Funds Right About This Stock?
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
- GuruFocus.com
Icahn: Some Businesses Are Given Away at These Prices
Icahn is buying Occidental, Hertz and Hewlett-Packard Continue reading...
- American City Business Journals
Oxy swallows poison pill to combat potential hostile takeover
A billionaire activist investor just grabbed a large stake in the Houston-based upstream oil and gas company.
- American City Business Journals
Activist investor buys up stake in Oxy; here's why
Icahn wants Oxy to be ready to sell into the consolidation he expects across the oil and gas market.
- Thomson Reuters StreetEvents
Edited Transcript of IEP earnings conference call or presentation 28-Feb-20 3:00pm GMT
Q4 2019 Icahn Enterprises LP Earnings Call
- GlobeNewswire
Icahn Enterprises L.P. Reports Fourth Quarter and Full Year 2019 Financial Results
Full year 2019 net loss attributable to Icahn Enterprises of $1.1 billion, or a loss of $5.38 per depositary unit Board approves quarterly distribution of $2.00 per depositary.
GuruFocus.comCarl Icahn Has Outperformed Buffett Over the Past 20 Years
Icahn Enterprises has been a better investment than Berkshire Hathaway Continue reading...
- GlobeNewswire
Icahn Enterprises L.P. Announces Q4 and Full Year 2019 Earnings Conference Call
Icahn Enterprises L.P. (IEP) announced today that it will discuss its fourth quarter and full year 2019 results on a conference call and webcast on Friday, February 28, 2020 - 10:00 a.m. Eastern Time. The webcast can be viewed live on Icahn Enterprises L.P.'s website at www.ielp.com. Icahn Enterprises L.P., a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion.
- GuruFocus.com
Icahn Buys Icahn Enterprises in 4th Quarter
Updates on the activist investor’s portfolio for the fourth quarter of 2019 Continue reading...
- Bloomberg
Xerox Mimics Icahn’s Pugnacity in Pursuit of HP
(Bloomberg Opinion) -- As a general rule, I’m not a big fan of corporations being guided by corporate raiders, a.k.a. shareholder activists. They tend to rely on financial engineering to boost the stock price; cut back on “expenses” like customer service and research and development; and run for the exits when they see the roof caving in.But Xerox Holdings Corp. may be the exception. The company’s biggest shareholder is the activist of activists, 83-year-old Carl Icahn, who controls around 11% of the stock. The chairman, Keith Cozza, is the chief executive officer of Icahn Enterprises LP, Icahn’s holding company. One board member, Nicholas Graziano, is a portfolio manager with Icahn Capital LP, Icahn’s hedge fund. Another is John Christodoro, a former managing partner at Icahn Capital.And John Visentin, the Xerox CEO, while not an Icahn guy the way the other three are, clearly sees eye to eye with the big dog. He got the job in no small part because he agreed with Icahn that Xerox’s planned merger with Fujifilm Holdings Corp. was a bad idea. When Xerox pulled out of the deal in May 2018 — and agreed to put Icahn’s allies on the board — Visentin, who had backed away from negotiating with the previous board, was installed as the new boss.It’s hardly news that Icahn is an aggressive investor. What is news is that under Visentin, Xerox — lumbering, old-school Xerox — has become just as aggressive. He has managed to breathe new life into the 113-year-old printer company. He’s doing the share buyback thing, but he’s also streamlined the company, increased free cash flow and consistently beat the Street’s expectations even as revenue has continued to decrease gradually. According to Bloomberg data, the share price rose 87% last year, a number not seen in many years.Of course, the most visible manifestation of this new aggressiveness is Xerox’s effort to buy its much larger rival HP Inc. The attempt, which became public in November — soon after an unimpressive HP analysts’ meeting — heated up on Monday when Xerox raised its offer to $24 a share from $22, bringing its bid to $35 billion. Talk about the minnow trying to swallow the whale. Xerox has $9 billion in revenue. HP has $58 billion. Xerox has a market cap of $8 billion. HP has a market cap of $31 billion. Not all that long ago, an audacious move like this by Xerox would have been unthinkable.And HP? Nearly eight decades ago, it was the original Silicon Valley startup, the avatar of the tech industry. But by the 1980s, it had congealed in its own bureaucracy, and a kind of paralysis set in, compounded by some well-publicized gaffes. In 2015, in an effort to create a more nimble culture, the board split the company in two. Hewlett Packard Enterprise got the software and services side of the company, while HP kept printers and laptops. Last year, HP’s stock was down 21% before Xerox announced its intentions in early November.The essential problem is that the printer business is in a slow but steady decline — and like newspapers, cable television and many other businesses, that decline is likely irreversible. For HP, the decline is made worse because it makes most of its money in the printer division by selling expensive ink cartridges — and many consumers buy less expensive cartridges made by competitors.At the analyst meeting in October, HP announced that it would eliminate up to 9,000 jobs by 2022, saving $1 billion, and would turn to a subscription model to revive its flagging cartridge business. Analysts were unimpressed, and in the aftermath of the meeting, the stock dropped 9.4%In Icahn-like fashion, this was exactly the moment Visentin pounced. Xerox, of course, has the same problem as HP — its printer business is declining — and it doesn’t have other businesses, like laptops, to soften the blow. The shrinking of the printer business has convinced Visentin that industry consolidation is inevitable; in a statement at the time of the original offer, Xerox said that “our industry is overdue for consolidation, and those who move first will have a distinct advantage.”In the materials it has provided to HP shareholders, Xerox claims that a merger will have synergies worth $2 billion and will generate nearly $6 billion in free cash flow. And Visentin plans to use that money less to manage the decline than to buy smaller, more innovative companies while investing in research and development that will allow the company to chart a new course that will generate growth and profits.There is no way of knowing whether Visentin can pull this off if he lands HP, though his track record so far at Xerox should give shareholders hope. Indeed, he is so clearly right about the first-mover advantage of consolidation that what HP really ought to do is turn around and make a tender offer for Xerox, which would require a lot less debt. And then it should install Visentin as CEO.Instead, HP has reverted to form, contending that the Xerox bid is inadequate, that its financing is shaky and generally avoiding coming to grips with reality. But sometime soon, HP will have to set the date for its annual meeting, and at that point its shareholders will have a say in the matter. Xerox, ever the aggressor, is proposing a slate of directors to replace HP’s current board.I know one big shareholder who will vote for the Xerox slate. A few months ago, Icahn bought 4% of HP’s stock. HP’s odds of going it alone much longer aren’t good at all.To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
Xerox Increases Offer Price for HP to $24 a Share
(Bloomberg) -- Xerox Holdings Corp. increased its offer price for HP Inc. to $24 a share, boosting the bid by $2 a share in an effort to win control of the personal computer maker which has previously refused to engage in takeover talks because it said the offer was too low.Xerox said in a statement Monday it plans to launch a tender offer “on or around March 2” comprised of $18.40 in cash and 0.149 Xerox shares for each HP share. The offer won’t be subject to any conditions related to financing or due diligence. The offer represents a 41% premium to HP’s 30-day volume weighted average trading price of $17.00, Xerox said.The iconic, but struggling, printer maker said last month it planned to nominate 11 directors to replace the HP board in an effort to push the merger through.HP’s shareholders “consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP,” Xerox said in the statement. The two hardware giants have withered in a world increasingly driven by software, and Xerox has argued the tie-up would revive both companies and unlock about $2 billion in synergies.A representative for HP wasn’t immediately available for comment. HP shares rose 4.5% to $22.71 at 9:31 a.m. in New York Monday. They’re down 1.3% in the past 12 months.HP has said in the past that it has many routes it could pursue to create value that aren’t dependent on a combination with Xerox, it said.Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for the tie-up. The billionaire has considerable influence over Xerox because he is its largest shareholder. He also played a role in appointing Xerox’s CEO, who was a former consultant to Icahn, and has ties to members of the board, including its chairman, who is also the chief executive officer of Icahn Enterprises.(Updates shares in fifth paragraph. A previous version of this story corrected the cash portion of the offer)To contact the reporter on this story: Molly Schuetz in New York at mschuetz9@bloomberg.netTo contact the editors responsible for this story: Molly Schuetz at mschuetz9@bloomberg.net, Timothy Annett, Tony RobinsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
