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Why Is LKQ Up 4.9% Since the Last Earnings Report?
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More than a month has gone by since the last earnings report for LKQ Corporation (LKQ - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
LKQ Q3 Earnings Drive Past Estimates, Revenues Grow Y/Y
LKQ Corporation’s third-quarter 2017 adjusted earnings from continuing operations came in at 45 cents per share, surpassing the Zacks Consensus Estimate of 42 cents. The bottom line is however, in line with the prior-year quarter figure.
In the third quarter, total revenue rose 11.7% to $2.47 billion from $2.21 billion a year ago and also outpaced the Zacks Consensus Estimate of $2.37 billion. A strong performance across all segments resulted in positive revenue growth for LKQ Corp.
Business Developments
In third-quarter 2017, LKQ Corp acquired 11 companies, including two in the United States and nine in Europe. These acquisitions will complement the company’s existing business line.
Also, during the quarter, European operations of LKQ Corp opened up two new branches in the United Kingdom and four new in the Eastern Europe.
Financial Position
LKQ Corp had cash and cash equivalents of $275.1 million as of Sep 30, 2017 compared with $227.4 million as of Dec 31, 2016.
In the first nine months of 2017, LKQ Corp had net cash of $449.2 million, provided by operating activities compared with $524.2 million during the same time frame of 2016.
2017 Outlook
For 2017, LKQ Corp expects organic revenue growth for parts & services in the range of 4-4.5%, revised from the prior guidance of 4-4.25%.
Adjusted income from continuing operations is expected to be within the range of $575-$595 million, up from the prior expectation of $570-$595 million. Adjusted earnings per share in 2017 are expected to be in the band of $1.86-$1.92, up from the former projection of $1.84-$1.92.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a flat path over the past two months.
At this time, LKQ's stock has a subpar Growth Score of D, a grade with the same score on the momentum front. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable solely for value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is LKQ Up 4.9% Since the Last Earnings Report?
More than a month has gone by since the last earnings report for LKQ Corporation (LKQ - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
LKQ Q3 Earnings Drive Past Estimates, Revenues Grow Y/Y
LKQ Corporation’s third-quarter 2017 adjusted earnings from continuing operations came in at 45 cents per share, surpassing the Zacks Consensus Estimate of 42 cents. The bottom line is however, in line with the prior-year quarter figure.
In the third quarter, total revenue rose 11.7% to $2.47 billion from $2.21 billion a year ago and also outpaced the Zacks Consensus Estimate of $2.37 billion. A strong performance across all segments resulted in positive revenue growth for LKQ Corp.
Business Developments
In third-quarter 2017, LKQ Corp acquired 11 companies, including two in the United States and nine in Europe. These acquisitions will complement the company’s existing business line.
Also, during the quarter, European operations of LKQ Corp opened up two new branches in the United Kingdom and four new in the Eastern Europe.
Financial Position
LKQ Corp had cash and cash equivalents of $275.1 million as of Sep 30, 2017 compared with $227.4 million as of Dec 31, 2016.
In the first nine months of 2017, LKQ Corp had net cash of $449.2 million, provided by operating activities compared with $524.2 million during the same time frame of 2016.
2017 Outlook
For 2017, LKQ Corp expects organic revenue growth for parts & services in the range of 4-4.5%, revised from the prior guidance of 4-4.25%.
Adjusted income from continuing operations is expected to be within the range of $575-$595 million, up from the prior expectation of $570-$595 million. Adjusted earnings per share in 2017 are expected to be in the band of $1.86-$1.92, up from the former projection of $1.84-$1.92.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a flat path over the past two months.
LKQ Corporation Price and Consensus
LKQ Corporation Price and Consensus | LKQ Corporation Quote
VGM Scores
At this time, LKQ's stock has a subpar Growth Score of D, a grade with the same score on the momentum front. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable solely for value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.