
Overview
LKQ Q3 revenue rose 1.3% yr/yr but missed analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
Company divested Self Service segment, returning $118 mln to shareholders
Outlook
LKQ raises full-year 2025 adjusted EPS guidance to $3.00-$3.15
Company narrows full-year 2025 organic revenue decline to 3.0%-2.0%
LKQ updates 2025 operating cash flow guidance to $0.825-$1.025 bln
Result Drivers
FOREIGN EXCHANGE IMPACT - Revenue growth benefited from a 2.6% increase due to favorable foreign exchange rates
SELF SERVICE DIVESTITURE - Sale of Self Service segment simplified operations and returned $118 mln to shareholders
SPECIALTY BUSINESS GROWTH - Specialty business achieved more than 9% organic growth, contributing to overall performance
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $3.49 bln | $3.53 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.84 | $0.75 (6 Analysts) |
Q3 EPS |
| $0.69 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "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 $44.26, about 32.1% above its October 29 closing price of $30.04
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nGNXbQ1r7L
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