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Icahn Enterprises stock pops on dividend surprise

Icahn Enterprises LP (NYSE:IEP) shares gained almost 15% in early trade on Friday after the diversified holding company run by activist investor Carl Icahn surprised by maintaining its dividend and narrowing its third-quarter loss.

Despite its stock declining about 62% in the year to date after short-seller Hindenburg Research alleged the company was overvalued and had an unsustainable dividend, Icahn Enterprises surprised investors by declaring a quarterly dividend.

It said $1 per depository unit would be paid on or about December 27, 2023, to depositary unitholders of record as of the close of business on November 17, 2023.

For 3Q, Icahn Enterprises said its losses for the quarter decreased from $123 million in the year-ago quarter to $6 million.

Revenue of $3 billion was down from $3.4 billion in the year-ago quarter but ahead of the $2.71 billion expected by Wall Street analysts.

Icahn Enterprises shares were up 14.5% at US$19.70 on Friday morning.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on X, formerly known as Twitter, @emilyjjarvie

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