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.
LKQ Gears Up to Report Q4 Earnings: Here's What to Expect
Read MoreHide Full Article
LKQ Corporation (LKQ - Free Report) is slated to release fourth-quarter 2023 results on Feb 22 before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 75 cents and $3.51 billion, respectively.
For the fourth quarter, the consensus estimate for LKQ’s earnings per share has remained unchanged in the past 90 days. Its bottom-line estimates imply a decline of 3.85% from the year-ago reported number.
The Zacks Consensus Estimate for LKQ’s quarterly revenues suggests a 17.09% year-over-year rise. Over the trailing four quarters, it surpassed earnings estimates on two occasions and missed twice, the average negative surprise being 1.36%. This is depicted in the graph below:
In third-quarter 2023, LKQ’s adjusted earnings per share of 86 cents missed the Zacks Consensus Estimate of 95 cents. The bottom line fell from the year-ago quarter’s 97 cents per share. The company reported net sales of $3.57 billion, outpacing the Zacks Consensus Estimate of $3.49 billion. The top line also increased 3% year over year.
Factors at Play
LKQ’s strategic acquisitions are boosting its prospects. The acquisition of Uni-Select Inc. for $2.1 billion, completed on Aug 1, 2023, is expected to bolster its global automotive vehicle parts distribution business. The acquisition will solidify the company’s pre-existing business operations in Quebec, which is likely to have boosted the automotive replacement parts supplier’s result in the to-be-reported quarter.
The company’s North American and European segments have been performing well. The North American segment is likely to have achieved full-year EBITDA margins of more than 19% in 2023 (excluding the anticipated dilution of Uni-Select), which is likely to have buoyed LKQ’s margin in the to-be-reported quarter.
In 2023, the average age of a new vehicle in the United States rose to 12.5 years, up from 12.2 years in 2022. Ageing vehicles have higher demand for spare and replacement parts. Rising demand for replacement parts is likely to bolster LKQ’s fourth-quarter result.
Here's a sneak peek at the firm’s key revenue projections for the to-be-reported quarter.
Our estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1.54 billion, suggesting a rise from $1.38 billion recorded in the prior-year quarter.
We expect revenues from parts and services in the North America unit for the fourth quarter to be $1.38 billion, indicating a rise from $1.03 billion recorded in the prior-year period.
However, we expect quarterly revenues from parts and services in the Specialty segment to be $357.1 million, implying a decline from $364 million reported in the prior-year quarter.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: LKQ has an Earnings ESP of +5.40%. This is because the Most Accurate Estimate is pegged at 80 cents, which is higher than 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: It currently carries a Zacks Rank #3.
Earnings Whispers for Other Auto Stocks
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
Image: Bigstock
LKQ Gears Up to Report Q4 Earnings: Here's What to Expect
LKQ Corporation (LKQ - Free Report) is slated to release fourth-quarter 2023 results on Feb 22 before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 75 cents and $3.51 billion, respectively.
For the fourth quarter, the consensus estimate for LKQ’s earnings per share has remained unchanged in the past 90 days. Its bottom-line estimates imply a decline of 3.85% from the year-ago reported number.
The Zacks Consensus Estimate for LKQ’s quarterly revenues suggests a 17.09% year-over-year rise. Over the trailing four quarters, it surpassed earnings estimates on two occasions and missed twice, the average negative surprise being 1.36%. This is depicted in the graph below:
LKQ Corporation Price and EPS Surprise
LKQ Corporation price-eps-surprise | LKQ Corporation Quote
Q3 Highlights
In third-quarter 2023, LKQ’s adjusted earnings per share of 86 cents missed the Zacks Consensus Estimate of 95 cents. The bottom line fell from the year-ago quarter’s 97 cents per share. The company reported net sales of $3.57 billion, outpacing the Zacks Consensus Estimate of $3.49 billion. The top line also increased 3% year over year.
Factors at Play
LKQ’s strategic acquisitions are boosting its prospects. The acquisition of Uni-Select Inc. for $2.1 billion, completed on Aug 1, 2023, is expected to bolster its global automotive vehicle parts distribution business. The acquisition will solidify the company’s pre-existing business operations in Quebec, which is likely to have boosted the automotive replacement parts supplier’s result in the to-be-reported quarter.
The company’s North American and European segments have been performing well. The North American segment is likely to have achieved full-year EBITDA margins of more than 19% in 2023 (excluding the anticipated dilution of Uni-Select), which is likely to have buoyed LKQ’s margin in the to-be-reported quarter.
In 2023, the average age of a new vehicle in the United States rose to 12.5 years, up from 12.2 years in 2022. Ageing vehicles have higher demand for spare and replacement parts. Rising demand for replacement parts is likely to bolster LKQ’s fourth-quarter result.
Here's a sneak peek at the firm’s key revenue projections for the to-be-reported quarter.
Our estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1.54 billion, suggesting a rise from $1.38 billion recorded in the prior-year quarter.
We expect revenues from parts and services in the North America unit for the fourth quarter to be $1.38 billion, indicating a rise from $1.03 billion recorded in the prior-year period.
However, we expect quarterly revenues from parts and services in the Specialty segment to be $357.1 million, implying a decline from $364 million reported in the prior-year quarter.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: LKQ has an Earnings ESP of +5.40%. This is because the Most Accurate Estimate is pegged at 80 cents, which is higher than 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: It currently carries a Zacks Rank #3.
Earnings Whispers for Other Auto Stocks
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.