What You Need To Know Ahead of LKQ's Earnings Release

With a market cap of $10.5 billion, LKQ Corporation (LKQ) operates in the auto parts and accessories industry. The company specializes in distributing replacement parts, components, and systems for vehicle repair and maintenance, serving both professional repair shops and retail customers. The Chicago, Illinois-based company will announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 24.

Ahead of this event, analysts expect the vehicle components company to report a profit of $0.88 per share, representing a 2.3% growth from $0.86 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the past four quarters while missing on three other occasions. LKQ missed the consensus EPS estimate by a 4.9% margin in the most recent quarter.

For fiscal 2024, analysts expect LKQ to report EPS of $3.55, marking a decline of 7.3% from $3.83 in fiscal 2023. However, EPS is expected to rebound in fiscal 2025, anticipating an almost 11% year-over-year jump, reaching $3.94.

In 2024, shares of LKQ declined 19.4%, underperforming the broader S&P 500 Index's ($SPX) 19.3% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 8.9% returns over the same period.

LKQ shares tumbled 12.4% on Jul. 25 due to disappointing Q2 results and a reduced outlook for fiscal 2024. The company reported lower-than-expected adjusted EPS of $0.98 and revenue of $3.7 billion. Additionally, the company lowered its full-year adjusted EPS forecast to $3.50-$3.70, citing lower repairable claims in North America and challenging macroeconomic conditions in Europe, which weighed on investor sentiment.

Analysts' consensus view on LKQ stock remains bullish, with a "Strong Buy" rating overall. Out of eight analysts covering the stock, six recommend a "Strong Buy," one suggests a "Moderate Buy," and one gives a "Hold" rating, a consensus that has remained steady over the past three months. As of writing, LKQ is trading below the average analyst price target of $55.28.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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