LKQ
The 10-second takeaway
For the quarter ended June 30 (Q2), LKQ beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins grew, net margins improved.
Revenue details
LKQ notched revenue of $1.01 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $992.3 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $759.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.41. The nine earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.43 for Q2 were 34% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 41.9%, 50 basis points worse than the prior-year quarter. Operating margin was 11.0%, 40 basis points better than the prior-year quarter. Net margin was 6.4%, 30 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $991.0 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.85.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 363 members out of 382 rating the stock outperform, and 19 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give LKQ a green thumbs-up, and four 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 $38.30.
- Add LKQ to My Watchlist.
