Overview
Auto parts provider's Q4 revenue rose 2.7%, beating analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company initiated strategic review to enhance shareholder value
Outlook
LKQ anticipates 2026 organic revenue growth for parts and services between -0.5% and 1.5%
Company expects 2026 diluted EPS of $2.35 to $2.65
LKQ projects 2026 operating cash flow between $900 mln and $1.1 bln
Result Drivers
NORTH AMERICA MARKET SHARE - Co gained market share in North America through pricing discipline and MSO relationship expansion despite soft demand
EUROPEAN OPERATIONS - Co integrated and simplified European operations to support margin improvement
SPECIALTY SEGMENT GROWTH - Specialty segment posted 7.8% organic revenue growth due to improving end markets
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $3.30 bln | $3.25 bln (7 Analysts) |
Q4 Adjusted EPS | Miss | $0.59 | $0.65 (8 Analysts) |
Q4 EPS | $0.29 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for LKQ Corp is $42.50, about 27.9% above its February 18 closing price of $33.22
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nGNXPLjLM
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)