We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for LKQ Corp (LKQ) This Earnings Season?
Read MoreHide Full Article
LKQ Corporation (LKQ - Free Report) is slated to release third-quarter 2021 results on Oct 28, before market open. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 86 cents per share on revenues of $3.24 billion.
This aftermarket auto parts distributor delivered better-than-expected earnings in the last reported quarter on higher-than-anticipated contribution from all of the company’s segments.
The company topped estimates in all of the preceding four quarters, the average beat being 40.77%. This is depicted in the graph below:
The Zacks Consensus Estimate for LKQ Corporation’s third-quarter earnings per share witnessed an upward revision of 9 cents in the past 90 days. Moreover, this compares favorably with the year-ago quarter’s earnings of 75 cents per share, indicating a 14.7% jump, year on year. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 6.4%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for LKQ Corporation for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.
Earnings ESP: LKQ Corporation has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
With the sustained recovery of the economy from the pandemic blues, auto sales across the globe have managed to rebound, underlined by the rising momentum of new vehicle sales. Consequently, the demand for replacement parts, components, and systems is likely to have picked up in the third quarter. Thus, LKQ Corporation’s quarterly results are likely to reflect the positive impact of rising demand across all of the company’s segments.
The Zacks Consensus Estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1,537 million, suggesting a rise from the $1,479 million recorded in the prior-year quarter. Further, the consensus mark for the segment’s quarterly EBITDA is pegged at $163 million, suggesting a jump from the $136 recorded in the year-ago quarter. This anticipated rise is likely to have aided the company’s performance during the quarter under review.
The consensus estimate for revenues from parts and services in North America for the September-end quarter is pegged at $1,072 million, indicating a rise from the $1,007 million recorded in the prior-year quarter. Additionally, the consensus mark for the segment’s quarterly EBITDA is pegged at $222 million, calling for a rise from the $205 recorded in the prior-year quarter. This is anticipated to have fueled the top and bottom lines during the to-be-reported quarter.
The Zacks Consensus Estimate for quarterly revenues from parts and services in specialty segment is pinned at $443 million, calling for a rise from the $400 million reported in the last-year quarter. In addition, the consensus mark for the segment’s quarterly EBITDA is pegged at $60 million, indicating a rise from the $48.34 recorded in the prior-year quarter. This projected upswing is likely to have boosted the company’s revenues and margins during the quarter in discussion.
However, the global chip crunch, which is currently wreaking havoc on the auto industry, is expected to have dented LKQ Corporation’s margins during the July-September period. Apart from this, rising manufacturing costs incurred for the development of technically-enhanced components might have hurt the firm’s profit levels for the quarter under discussion.
Stocks to Consider
Here are a few stocks lined up to release third-quarter results soon. Encouragingly, our model predicts an earnings beat for these stocks:
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +5.51% and holds a Zacks Rank of 2, at present. The company is scheduled to release quarterly figures on Oct 28.
Group 1 Automotive (GPI - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #2, currently. The company’s third-quarter 2021 results are scheduled to be out on Oct 28.
Carvana Co. (CVNA - Free Report) has an Earnings ESP of +33.39% and currently carries a Zacks Rank #2. The company is set to report third-quarter 2021 earnings on Nov 4.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's in Store for LKQ Corp (LKQ) This Earnings Season?
LKQ Corporation (LKQ - Free Report) is slated to release third-quarter 2021 results on Oct 28, before market open. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 86 cents per share on revenues of $3.24 billion.
This aftermarket auto parts distributor delivered better-than-expected earnings in the last reported quarter on higher-than-anticipated contribution from all of the company’s segments.
The company topped estimates in all of the preceding four quarters, the average beat being 40.77%. This is depicted in the graph below:
LKQ Corporation Price and EPS Surprise
LKQ Corporation price-eps-surprise | LKQ Corporation Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for LKQ Corporation’s third-quarter earnings per share witnessed an upward revision of 9 cents in the past 90 days. Moreover, this compares favorably with the year-ago quarter’s earnings of 75 cents per share, indicating a 14.7% jump, year on year. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 6.4%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for LKQ Corporation for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.
Earnings ESP: LKQ Corporation has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: LKQ Corporation currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
With the sustained recovery of the economy from the pandemic blues, auto sales across the globe have managed to rebound, underlined by the rising momentum of new vehicle sales. Consequently, the demand for replacement parts, components, and systems is likely to have picked up in the third quarter. Thus, LKQ Corporation’s quarterly results are likely to reflect the positive impact of rising demand across all of the company’s segments.
The Zacks Consensus Estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1,537 million, suggesting a rise from the $1,479 million recorded in the prior-year quarter. Further, the consensus mark for the segment’s quarterly EBITDA is pegged at $163 million, suggesting a jump from the $136 recorded in the year-ago quarter. This anticipated rise is likely to have aided the company’s performance during the quarter under review.
The consensus estimate for revenues from parts and services in North America for the September-end quarter is pegged at $1,072 million, indicating a rise from the $1,007 million recorded in the prior-year quarter. Additionally, the consensus mark for the segment’s quarterly EBITDA is pegged at $222 million, calling for a rise from the $205 recorded in the prior-year quarter. This is anticipated to have fueled the top and bottom lines during the to-be-reported quarter.
The Zacks Consensus Estimate for quarterly revenues from parts and services in specialty segment is pinned at $443 million, calling for a rise from the $400 million reported in the last-year quarter. In addition, the consensus mark for the segment’s quarterly EBITDA is pegged at $60 million, indicating a rise from the $48.34 recorded in the prior-year quarter. This projected upswing is likely to have boosted the company’s revenues and margins during the quarter in discussion.
However, the global chip crunch, which is currently wreaking havoc on the auto industry, is expected to have dented LKQ Corporation’s margins during the July-September period. Apart from this, rising manufacturing costs incurred for the development of technically-enhanced components might have hurt the firm’s profit levels for the quarter under discussion.
Stocks to Consider
Here are a few stocks lined up to release third-quarter results soon. Encouragingly, our model predicts an earnings beat for these stocks:
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +5.51% and holds a Zacks Rank of 2, at present. The company is scheduled to release quarterly figures on Oct 28.
Group 1 Automotive (GPI - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #2, currently. The company’s third-quarter 2021 results are scheduled to be out on Oct 28.
Carvana Co. (CVNA - Free Report) has an Earnings ESP of +33.39% and currently carries a Zacks Rank #2. The company is set to report third-quarter 2021 earnings on Nov 4.