LKQ Corporation Set to Report Q1 Earnings with Mixed Analyst Outlook
LKQ Corporation (LKQ), based in Chicago, Illinois, has a market capitalization of $10.8 billion. As a global leader in the distribution of vehicle repair and maintenance parts, it will announce its fiscal 2025 Q1 earnings on Thursday, April 24, before market opening.
Analysts Weigh In on Upcoming Earnings
As LKQ approaches this earnings report, analysts predict a profit of $0.79 per share—down 3.7% from $0.82 earned in the same quarter last year. In the past four quarters, the company has beaten Wall Street’s earnings estimates twice while falling short on two occasions. Most recently, LKQ reported an EPS of $0.80, topping the consensus estimate by 6.7%, driven by strong demand for aftermarket and recycled auto parts in North America and Europe.
Fiscal Year Projections and Market Performance
Looking forward to fiscal 2025, analysts expect LKQ to report an EPS of $3.61, which reflects a 3.7% increase from $3.48 in fiscal 2024. Furthermore, they forecast a year-over-year growth of 7.8% in EPS to $3.61 in fiscal 2026.
Over the past year, LKQ shares have decreased by 18.6%, underperforming the S&P 500 Index, which saw a 2.1% increase, and the Consumer Discretionary Select Sector SPDR Fund (XLY), which returned 5.2% over the same timeframe.
Q4 Results and Shareholder Returns
Following its Q4 results announcement on February 20, LKQ’s stock rose 6%. Investors reacted positively, despite a mixed performance: revenue fell by 4.1% year-over-year to $3.4 billion, influenced by a 3.6% drop in organic parts and services revenue, while adjusted net income declined by 8.4% to $207 million.
Encouragingly, LKQ reaffirmed its commitment to shareholder returns by distributing over $150 million in the form of share buybacks and dividends. Approximately $80 million was allocated to repurchase 2.1 million shares, a move that illustrates the company’s confidence in its long-term value. For 2025, LKQ projects adjusted EPS between $3.40 and $3.70, with organic growth in parts and services expected to range from 0% to 2%.
Analyst Consensus for LKQ Stock
The consensus among analysts is highly favorable for LKQ Corporation, with an overall “Strong Buy” rating. Among the seven analysts monitoring the stock, five recommend “Strong Buy,” one advocates for a “Moderate Buy,” and one suggests a “Hold” rating.
Additionally, LKQ’s average price target of $53 indicates a potential upside of 28.9% from its current price level.
On the date of publication, Kritika Sarmah did not hold positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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