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What Should Investors Know Ahead of LKQ Q4 Earnings Release
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LKQ Corporation (LKQ - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 77 cents and $3.07 billion, respectively.
This aftermarket auto parts distributor reported better-than-expected earnings in the last reported quarter on higher-than-anticipated contributions from the North American and European markets. The company topped earnings estimates in the preceding four quarters, with the average being 34.4%. This is depicted in the graph below:
The Zacks Consensus Estimate for LKQ’s fourth-quarter earnings per share has been unchanged in the past 90 days. The bottom-line projection implies year-over-year growth of 12%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 4%.
Factors to Note
The increase in the average age of vehicles (12.1 years according to IHS Markit data) is likely to have positively impacted sales of LKQ’s products. For the smooth functioning of the aging vehicles, customers have been spending heavily to replace any faulty parts and components. Consequently, the demand for replacement parts, components, and systems is likely to have picked up and boosted LKQ’s fourth-quarter revenues.
On the flip side, the rising manufacturing costs for the development of technically-enhanced components might have hurt the firm’s profit levels in the quarter under discussion. Inflationary headwinds related to labor, freight and commodity costs are likely to have weighed on the firm’s fourth-quarter margins.
Here’s a sneak peek into LKQ’s revenues and EBITDA estimates across its 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 $1,459 million, suggesting a rise from the $1,426 million recorded in the prior-year quarter. Further, the consensus mark for the segment’s quarterly EBITDA is pegged at $134 million, indicating no change from the reported figure in the comparable year-ago period.
The consensus estimate for revenues from parts and services in North America for the December-end quarter is pegged at $1,237 million, indicating a rise from the $981 million recorded in the prior-year quarter. However, the consensus mark for the segment’s quarterly EBITDA is pegged at $200 million, which indicates a decline from the $213 recorded in the prior-year quarter.
The Zacks Consensus Estimate for quarterly revenues from parts and services in the Specialty segment is $380 million, calling for a rise from the $354 million reported in the prior-year quarter. In addition, the consensus mark for the segment’s quarterly EBITDA is pegged at $35.01 million, indicating a rise from the $29.87 million recorded in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for LKQ this time around. The 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, which is not the case here.
Earnings ESP: LKQ has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Genuine Parts Company (GPC - Free Report) is set to report fourth-quarter 2021 earnings on Feb 17. Genuine Parts surpassed earnings estimates in the last four quarters, with an average of 16%. Our proven model predicts an earnings beat for GPC this time around as well.
Genuine Parts has an Earnings ESP of +10.16% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $4.67 billion, respectively. The top-and bottom-line projection implies year-over-year growth of 10% and 6%, respectively.
Dorman Products (DORM - Free Report) is slated to post fourth-quarter 2021 results on Feb 22. DORM surpassed earnings estimates in three of the last four quarters, while matching estimates once. Our proven model doesn’t conclusively predict an earnings beat for Dorman this time around.
Dorman has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.35 per share and $365 million, respectively. The top-and bottom-line projection implies year-over-year growth of 21% and 13.4%, respectively.
Standard Motor Products (SMP - Free Report) is scheduled to report fourth-quarter results on Feb 22. SMP surpassed earnings estimates in the last four quarters, with an average of 67.3%. Our proven model doesn’t conclusively predict an earnings beat for SMP this time around.
Standard Motor Products has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $286 million, respectively. While the top-line projection implies year-over-year growth of 1.26%, the bottom-line estimate calls for a decline of 39% on a year-over-year basis.
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What Should Investors Know Ahead of LKQ Q4 Earnings Release
LKQ Corporation (LKQ - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 77 cents and $3.07 billion, respectively.
This aftermarket auto parts distributor reported better-than-expected earnings in the last reported quarter on higher-than-anticipated contributions from the North American and European markets. The company topped earnings estimates in the preceding four quarters, with the average being 34.4%. 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’s fourth-quarter earnings per share has been unchanged in the past 90 days. The bottom-line projection implies year-over-year growth of 12%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 4%.
Factors to Note
The increase in the average age of vehicles (12.1 years according to IHS Markit data) is likely to have positively impacted sales of LKQ’s products. For the smooth functioning of the aging vehicles, customers have been spending heavily to replace any faulty parts and components. Consequently, the demand for replacement parts, components, and systems is likely to have picked up and boosted LKQ’s fourth-quarter revenues.
On the flip side, the rising manufacturing costs for the development of technically-enhanced components might have hurt the firm’s profit levels in the quarter under discussion. Inflationary headwinds related to labor, freight and commodity costs are likely to have weighed on the firm’s fourth-quarter margins.
Here’s a sneak peek into LKQ’s revenues and EBITDA estimates across its 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 $1,459 million, suggesting a rise from the $1,426 million recorded in the prior-year quarter. Further, the consensus mark for the segment’s quarterly EBITDA is pegged at $134 million, indicating no change from the reported figure in the comparable year-ago period.
The consensus estimate for revenues from parts and services in North America for the December-end quarter is pegged at $1,237 million, indicating a rise from the $981 million recorded in the prior-year quarter. However, the consensus mark for the segment’s quarterly EBITDA is pegged at $200 million, which indicates a decline from the $213 recorded in the prior-year quarter.
The Zacks Consensus Estimate for quarterly revenues from parts and services in the Specialty segment is $380 million, calling for a rise from the $354 million reported in the prior-year quarter. In addition, the consensus mark for the segment’s quarterly EBITDA is pegged at $35.01 million, indicating a rise from the $29.87 million recorded in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for LKQ this time around. The 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, which is not the case here.
Earnings ESP: LKQ has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: LKQ currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
What to Expect From Q4 Releases of LKQ’s Peers
Genuine Parts Company (GPC - Free Report) is set to report fourth-quarter 2021 earnings on Feb 17. Genuine Parts surpassed earnings estimates in the last four quarters, with an average of 16%. Our proven model predicts an earnings beat for GPC this time around as well.
Genuine Parts has an Earnings ESP of +10.16% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $4.67 billion, respectively. The top-and bottom-line projection implies year-over-year growth of 10% and 6%, respectively.
Dorman Products (DORM - Free Report) is slated to post fourth-quarter 2021 results on Feb 22. DORM surpassed earnings estimates in three of the last four quarters, while matching estimates once. Our proven model doesn’t conclusively predict an earnings beat for Dorman this time around.
Dorman has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.35 per share and $365 million, respectively. The top-and bottom-line projection implies year-over-year growth of 21% and 13.4%, respectively.
Standard Motor Products (SMP - Free Report) is scheduled to report fourth-quarter results on Feb 22. SMP surpassed earnings estimates in the last four quarters, with an average of 67.3%. Our proven model doesn’t conclusively predict an earnings beat for SMP this time around.
Standard Motor Products has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $286 million, respectively. While the top-line projection implies year-over-year growth of 1.26%, the bottom-line estimate calls for a decline of 39% on a year-over-year basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.