LKQ (NASDAQ:LKQ) Issues Earnings Results, Misses Estimates By $0.04 EPS

LKQ (NASDAQ:LKQ) released its quarterly earnings results on Thursday. The auto parts company reported $0.67 EPS for the quarter, missing the consensus estimate of $0.71 by ($0.04), Zacks reports. The firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.48 billion. LKQ had a return on equity of 10.84% and a net margin of 3.37%.The company’s quarterly revenue was down 3.0% on a year-over-year basis. During the same period last year, the firm earned $0.87 EPS. LKQ updated its FY 2026 guidance to 2.600-2.900 EPS.

Here are the key takeaways from LKQ’s conference call:

• Full-year guidance was reduced: adjusted diluted EPS is now expected at $2.60–$2.90, versus $2.90–$3.20 previously, while free cash flow guidance fell to $625–$775 million from $700–$850 million.
• Europe remained the primary weakness, with organic revenue down 12.6% and an estimated $140 million revenue and $50 million EBITDA impact from Germany’s ERP implementation; softer U.K. and Benelux demand added further pressure.
• North America returned to positive organic growth for the first time in nine quarters, rising 0.5% despite repairable claims declining 1%–3%. Alternative parts utilization exceeded 40%, while salvage margins, fill rates, and free cash flow improved sequentially.
• Specialty delivered resilient 4.5% organic revenue growth, although management acknowledged that gross margin, product mix, and operating efficiency need improvement; an $8 million acquisition-related credit-loss reserve was described as resolved.
• Management said Germany’s ERP recovery is underway, with revenue exceeding 85% of its normal run rate in late July and a goal of reaching full run rate by year-end. The company’s strategic review remains active, with multiple parties engaged, but no transaction update was provided.

LKQ Price Performance

Shares of NASDAQ:LKQ traded down $0.15 during trading on Friday, hitting $22.45. 5,269,326 shares of the stock were exchanged, compared to its average volume of 2,797,358. The company has a market cap of $5.72 billion, a PE ratio of 12.47 and a beta of 0.83. The company has a current ratio of 1.58, a quick ratio of 0.60 and a debt-to-equity ratio of 0.52. The company has a fifty day moving average price of $25.77 and a two-hundred day moving average price of $29.13. LKQ has a 12-month low of $21.17 and a 12-month high of $37.13.

LKQ Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date is Thursday, August 20th. LKQ’s dividend payout ratio (DPR) is presently 66.67%.

Analyst Ratings Changes

A number of analysts recently weighed in on LKQ shares. JPMorgan Chase & Co. decreased their price target on shares of LKQ from $37.00 to $30.00 and set an “overweight” rating for the company in a research note on Friday. Robert W. Baird set a $30.00 target price on shares of LKQ in a research note on Friday. Stephens lowered their price target on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a report on Tuesday, July 21st. Raymond James Financial set a $30.00 price objective on LKQ in a research report on Friday. Finally, Barclays dropped their target price on LKQ from $33.00 to $30.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, LKQ has a consensus rating of “Moderate Buy” and an average target price of $33.25.

Key LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: JPMorgan lowered its price target from $37 to $30 but maintained an overweight rating. The new target implies substantial upside from recent levels, suggesting the firm views the selloff as excessive if LKQ’s European operations stabilize. Benzinga analyst update
• Positive Sentiment: LKQ declared a quarterly dividend of $0.30 per share, payable September 3 to shareholders of record August 20. At recent prices, the annualized payout represents an approximate 5.3% yield, which may support income-oriented investors.
• Neutral Sentiment: Management said North America is showing improving trends and Specialty demand remains steady, providing potential offsets if European performance recovers.
• Negative Sentiment: Second-quarter adjusted EPS was $0.67, below estimates near $0.71-$0.73 and down from $0.87 a year earlier. Revenue of approximately $3.41 billion also missed expectations and declined 3% year over year. LKQ second-quarter earnings report
• Negative Sentiment: LKQ reduced 2026 adjusted EPS guidance to $2.60-$2.90 from $2.90-$3.20, below the roughly $2.98 analyst consensus. It also forecast organic revenue growth of negative 3% to negative 1%.
• Negative Sentiment: Europe was the primary cause of the guidance cut. A slower-than-expected recovery following Germany’s enterprise resource-planning implementation, along with softer demand in the U.K. and Benelux, reportedly reduced quarterly revenue by about $140 million and European EBITDA by roughly $50 million. Zacks LKQ earnings analysis

Institutional Trading of LKQ

Several large investors have recently bought and sold shares of LKQ. Parallel Advisors LLC raised its stake in shares of LKQ by 187.3% during the 4th quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after buying an additional 2,866 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of LKQ in the first quarter valued at about $278,000. Arkadios Wealth Advisors acquired a new stake in shares of LKQ in the fourth quarter valued at approximately $205,000. Horizon Investments LLC increased its stake in shares of LKQ by 78.3% during the 3rd quarter. Horizon Investments LLC now owns 7,417 shares of the auto parts company’s stock worth $227,000 after purchasing an additional 3,258 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S raised its position in shares of LKQ by 170.0% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company’s stock worth $292,000 after purchasing an additional 4,965 shares during the last quarter. Institutional investors and hedge funds own 95.63% of the company’s stock.

About LKQ

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.