Earnings Outlook For LKQ

LKQ LKQ is preparing to release its quarterly earnings on Thursday, 2025-04-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect LKQ to report an earnings per share (EPS) of $0.78.

The market awaits LKQ's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.06, leading to a 3.02% drop in the share price the following trading session.

Here's a look at LKQ's past performance and the resulting price change:

LKQ Share Price Analysis

Shares of LKQ were trading at $42.26 as of April 22. Over the last 52-week period, shares are down 1.14%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on LKQ

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on LKQ.

Analysts have given LKQ a total of 6 ratings, with the consensus rating being Outperform. The average one-year price target is $56.17, indicating a potential 32.92% upside.

Peer Ratings Comparison

This comparison focuses on the analyst ratings and average 1-year price targets of Pool, Genuine Parts and A-Mark Precious Metals, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Pool, with an average 1-year price target of $337.25, suggesting a potential 698.04% upside.
• Analysts currently favor an Neutral trajectory for Genuine Parts, with an average 1-year price target of $127.5, suggesting a potential 201.7% upside.
• Analysts currently favor an Buy trajectory for A-Mark Precious Metals, with an average 1-year price target of $35.33, suggesting a potential 16.4% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Pool, Genuine Parts and A-Mark Precious Metals are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

LKQ is at the bottom for Revenue Growth with -4.11%, while the top peer has 31.92% growth. LKQ is at the bottom for Gross Profit with $1.32B, while the top peer has $44.77M. LKQ is at the bottom for Return on Equity with 2.55%, while the top peer has 2.95%.

All You Need to Know About LKQ

Since forming in 1998 to consolidate the auto salvage business in the United States, LKQ has developed into a leading distributor of aftermarket and recycled auto parts with around 1,500 facilities across North America and Europe. The company primarily sells into the professional channel and offers an assortment of collision and mechanical parts to both body shops and mechanical repair shops. It also continues to operate more than 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ typically purchases around 250,000 salvage vehicles annually that are used to extract vehicle parts for resale.

Unraveling the Financial Story of LKQ

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Decline in Revenue: Over the 3 months period, LKQ faced challenges, resulting in a decline of approximately -4.11% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: LKQ's net margin is impressive, surpassing industry averages. With a net margin of 4.65%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): LKQ's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.55% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): LKQ's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.03%, the company showcases efficient use of assets and strong financial health.

Debt Management: LKQ's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.93, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for LKQ visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.