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LKQ Gears Up to Report Q1 Earnings: Here's What to Expect
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LKQ Corporation (LKQ - Free Report) is slated to release first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 94 cents and $3.79 billion, respectively.
For the first quarter, the consensus estimate for LKQ’s EPS has moved down by 2 cents in the past 30 days. Its bottom-line estimates imply a decline of 9.62% from the year-ago reported number.
The Zacks Consensus Estimate for LKQ’s quarterly revenues suggests a 13.30% year-over-year rise. Over the trailing four quarters, it surpassed earnings estimates on one occasion and missed thrice, the average surprise being 3.42%. This is depicted in the graph below:
In fourth-quarter 2023, LKQ’s adjusted EPS of 84 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line rose from the year-ago quarter’s 78 cents per share. The company reported net sales of $3.50 billion, missing the Zacks Consensus Estimate of $3.51 billion. The top line, however, increased 16.6% year over year.
Factors at Play
Per S&P Global Mobility, the average age of light vehicles in the United States is 12.5 years. Aging vehicles have higher demand for spare and replacement parts. Rising demand for replacement parts is likely to bolster LKQ’s first-quarter results.
The company’s North American and European segments have been performing well. Its 1 LKQ Europe program is expected to have aided the segment’s revenues. Our estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1.70 billion, suggesting a rise from $1.55 billion recorded in the prior-year quarter.
We expect revenues from parts and services in the North America unit for the first quarter to be $1.46 billion, indicating a rise from $1.15 billion recorded in the prior-year period.
On the flip side, LKQ's Specialty segment is facing headwinds in the RV and towing products business. In the fourth quarter, the Specialty unit reported a 7% decrease in organic revenues. Wholesale shipments were down 36.5% in 2023. The trend is likely to have persisted in the first quarter as dealers continue to hesitate in fully restocking accessories, waiting for a noticeable uptick in demand for new units.
Also, the decrease in metal pricing is likely to adversely impact the profitability of the Self-Service segment. In 2024, commodity prices are anticipated to pose a headwind of 9 cents on the EPS, as the current precious metal prices incorporated in the guidance fall below the average for 2023. The headwind from commodity prices is likely to have hurt the company’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it does not have 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 -2.57%. This is because the Most Accurate Estimate is pegged lower 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: LKQ currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
The Zacks Consensus Estimate for GM’s to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $40.61 billion, respectively. General Motors surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.95%.
Allison Transmission Holdings, Inc. (ALSN - Free Report) has an Earnings ESP of +1.27% and sports a Zacks Rank #1 at present. The company is scheduled to release first-quarter 2024 results on Apr 25.
The Zacks Consensus Estimate for ALSN’s to-be-reported quarter’s earnings and revenues is pegged at $1.89 per share and $765.08 million, respectively. Allison surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.45%.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +674.43% and a Zacks Rank #3 at present. The company is slated to release first-quarter 2024 results on May 3.
The Zacks Consensus Estimate for AXL’s to-be-reported quarter’s earnings and revenues is pegged at 1 cent per share and $1.52 billion, respectively. American Axle surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 0.52%.
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LKQ Gears Up to Report Q1 Earnings: Here's What to Expect
LKQ Corporation (LKQ - Free Report) is slated to release first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 94 cents and $3.79 billion, respectively.
For the first quarter, the consensus estimate for LKQ’s EPS has moved down by 2 cents in the past 30 days. Its bottom-line estimates imply a decline of 9.62% from the year-ago reported number.
The Zacks Consensus Estimate for LKQ’s quarterly revenues suggests a 13.30% year-over-year rise. Over the trailing four quarters, it surpassed earnings estimates on one occasion and missed thrice, the average surprise being 3.42%. This is depicted in the graph below:
LKQ Corporation Price and EPS Surprise
LKQ Corporation price-eps-surprise | LKQ Corporation Quote
Q4 Highlights
In fourth-quarter 2023, LKQ’s adjusted EPS of 84 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line rose from the year-ago quarter’s 78 cents per share. The company reported net sales of $3.50 billion, missing the Zacks Consensus Estimate of $3.51 billion. The top line, however, increased 16.6% year over year.
Factors at Play
Per S&P Global Mobility, the average age of light vehicles in the United States is 12.5 years. Aging vehicles have higher demand for spare and replacement parts. Rising demand for replacement parts is likely to bolster LKQ’s first-quarter results.
The company’s North American and European segments have been performing well. Its 1 LKQ Europe program is expected to have aided the segment’s revenues. Our estimate for quarterly revenues from parts and services in Europe, which has the highest contribution to the company’s revenues, is pegged at $1.70 billion, suggesting a rise from $1.55 billion recorded in the prior-year quarter.
We expect revenues from parts and services in the North America unit for the first quarter to be $1.46 billion, indicating a rise from $1.15 billion recorded in the prior-year period.
On the flip side, LKQ's Specialty segment is facing headwinds in the RV and towing products business. In the fourth quarter, the Specialty unit reported a 7% decrease in organic revenues. Wholesale shipments were down 36.5% in 2023. The trend is likely to have persisted in the first quarter as dealers continue to hesitate in fully restocking accessories, waiting for a noticeable uptick in demand for new units.
Also, the decrease in metal pricing is likely to adversely impact the profitability of the Self-Service segment. In 2024, commodity prices are anticipated to pose a headwind of 9 cents on the EPS, as the current precious metal prices incorporated in the guidance fall below the average for 2023. The headwind from commodity prices is likely to have hurt the company’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it does not have 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 -2.57%. This is because the Most Accurate Estimate is pegged lower 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: LKQ currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
General Motors Company (GM - Free Report) has an Earnings ESP of +7.77% and a Zacks Rank #2 at present. The company is set to release first-quarter 2024 results on Apr 23. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $40.61 billion, respectively. General Motors surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.95%.
Allison Transmission Holdings, Inc. (ALSN - Free Report) has an Earnings ESP of +1.27% and sports a Zacks Rank #1 at present. The company is scheduled to release first-quarter 2024 results on Apr 25.
The Zacks Consensus Estimate for ALSN’s to-be-reported quarter’s earnings and revenues is pegged at $1.89 per share and $765.08 million, respectively. Allison surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.45%.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +674.43% and a Zacks Rank #3 at present. The company is slated to release first-quarter 2024 results on May 3.
The Zacks Consensus Estimate for AXL’s to-be-reported quarter’s earnings and revenues is pegged at 1 cent per share and $1.52 billion, respectively. American Axle surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 0.52%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.