(Reuters) -Icahn Enterprises LP on Wednesday reported a surprise quarterly loss as volatility in markets hit returns on its investments, sending the shares of the company owned by billionaire Carl Icahn down nearly 8% before the bell.
The shareholder activist had recently found himself in unchartered waters when short seller Hindenburg Research launched a scathing attack, accusing his firm of overvaluing its holdings and relying on a “Ponzi-like” structure to pay dividends.
“Icahn has been using money taken in from new investors to pay out dividends to old investors,” Hindenburg had alleged about the Florida-based company with investments in the energy, automotive, food packaging, real estate and other industries. Excluding one-time items, Icahn Enterprises reported a loss of 11 cents per share, missing analysts’ average estimate of a 19 cents profit, according to Refinitiv data.
Revenue for the quarter ended March 31 came in at $2.6 billion compared to $4.1 billion a year earlier.
