The 10-second takeaway
For the quarter ended March 31 (Q1), LKQ beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased.
Margins dropped across the board.
LKQ reported revenue of $1.20 billion. The 10 analysts polled by S&P Capital IQ anticipated revenue of $1.16 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.28 for Q1 were 3.7% higher than the prior-year quarter's $0.27 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 42.0%, 60 basis points worse than the prior-year quarter. Operating margin was 12.0%, 20 basis points worse than the prior-year quarter. Net margin was 7.1%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $4.62 billion. The average EPS estimate is $1.06.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 395 members out of 412 rating the stock outperform, and 17 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 $23.65.
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