LKQ Earnings: Here’s Why Investors are Happy Now

LKQ Corporation (NASDAQ:LKQ) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.55%.

LKQ Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.18% to $0.26 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 24.36% to $1.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: LKQ Corporation reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.25. It beat the average revenue estimate of $1.19 billion.

Quoting Management: “Our very strong organic revenue growth of 13.1% for parts and services revenue was driven by improvements across both our segments. We were particularly pleased to see our North American operations report a robust 7.3% parts and services growth, while organic growth in our European operations accelerated to 37.8%,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. “Our 24% revenue growth translated into growth in EPS of 30% (after adjusting for acquisition related items, our refinancing costs and favorable legal settlements last year) demonstrating the leverage we are achieving with our revenue growth,” continued Mr. Wagman.

Key Stats (on next page)…

Revenue increased 4.66% from $1.2 billion in the previous quarter. EPS decreased 7.14% from $0.28 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.25 and has not changed. For the current year, the average estimate is a profit of $1.06, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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