The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LKQ beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins shrank across the board.
LKQ logged revenue of $939.6 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $916.3 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $674.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The nine earnings estimates compiled by S&P Capital IQ averaged $0.38 per share on the same basis. GAAP EPS of $0.38 for Q4 were 31% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.7%, 100 basis points worse than the prior-year quarter. Operating margin was 9.8%, 110 basis points worse than the prior-year quarter. Net margin was 6.0%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $998.0 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $3.94 billion. The average EPS estimate is $1.83.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 313 members out of 329 rating the stock outperform, and 16 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give LKQ a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LKQ is outperform, with an average price target of $34.86.
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