LKQ (NASDAQ:LKQ) Issues Quarterly Earnings Results, Misses Estimates By $0.08 EPS

LKQ (NASDAQ:LKQ) announced its quarterly earnings data on Thursday. The auto parts company reported $0.50 EPS for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.08), FiscalAI reports. LKQ had a net margin of 1.89% and a return on equity of 9.57%. The firm had revenue of $3.32 billion during the quarter, compared to analyst estimates of $3.36 billion. During the same quarter in the previous year, the business earned $0.84 EPS. LKQ’s revenue for the quarter was down 5.1% on a year-over-year basis.

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

• Third-quarter results deteriorated sharply: Revenue fell 5.1% to approximately $3.3 billion, adjusted EPS declined to $0.50 from $0.84, and GAAP EPS was a $0.09 loss. Full-year 2026 guidance was suspended due to weak performance and the leadership transition.
• Europe remained the primary drag. Organic revenue declined 9.8%, segment EBITDA fell $94 million year over year to $68 million, and the ERP disruption in Germany reduced quarterly EBITDA by an estimated $43 million; issues in the U.K. and Benelux also caused market-share losses.
• The board appointed Sal Abbate as CEO effective December 15, engaged Alvarez & Marsal to stabilize European operations, and suspended the strategic review, including the Specialty sale process. These actions prioritize operational recovery but remove near-term clarity around potential strategic value realization.
• North America showed resilience despite soft demand. Organic revenue declined 2.4%, but segment EBITDA margin expanded 40 basis points to 14.4% through pricing and cost discipline, while alternative-part utilization reached a record nearly 41%.
• Specialty delivered 0.9% organic revenue growth despite pressure from higher fuel costs, interest rates and trade tensions, while third-quarter operating cash flow reached $411 million and free cash flow was $372 million. LKQ ended the quarter with approximately $1.7 billion of liquidity and no significant debt maturities until 2028.

LKQ Price Performance

Shares of LKQ stock traded up $0.46 on Friday, hitting $18.56. The company’s stock had a trading volume of 7,479,379 shares, compared to its average volume of 5,494,527. The company has a market capitalization of $4.70 billion, a P/E ratio of 18.56 and a beta of 0.87. LKQ has a 52-week low of $16.85 and a 52-week high of $37.13. The firm has a fifty day moving average price of $22.76 and a 200-day moving average price of $27.22. The company has a quick ratio of 0.61, a current ratio of 1.75 and a debt-to-equity ratio of 0.58.

LKQ Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 19th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $1.20 annualized dividend and a yield of 6.5%. LKQ’s dividend payout ratio is 120.00%.

More LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Dividend maintained: LKQ declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a reported yield of approximately 6.6%. The dividend provides some support for income-focused investors, although it is unlikely to offset the operational concerns.
• Neutral Sentiment: Analyst stance remains cautious: Barrington maintained a Hold rating, citing ERP-related earnings pressure and uncertainty around a European recovery. The unchanged rating indicates that the latest news reinforces, rather than materially changes, the existing cautious view. LKQ Hold Rating Maintained
• Negative Sentiment: ERP disruption and leadership change: LKQ disclosed continuing problems with its European enterprise resource planning implementation, while its CEO departed immediately. Investors had previously been told that related operating processes had normalized, making the latest disclosure especially damaging to credibility. LKQ Investor Scrutiny and CEO Departure
• Negative Sentiment: Guidance withdrawn and strategic review paused: LKQ suspended its full-year 2026 guidance and paused its strategic review as European results lagged. This removes important visibility into future earnings and suggests management is prioritizing an operational reset over potential portfolio or strategic transactions. LKQ Suspends Guidance and Pauses Strategic Review
• Negative Sentiment: Weak quarterly performance: Third-quarter revenue was approximately $3.32 billion, down 5.1% year over year and below the roughly $3.36 billion consensus estimate. Reported EPS of $0.50 fell from $0.84 a year earlier and missed the $0.61 consensus cited by some analysts, despite exceeding a separate Zacks estimate of $0.48. LKQ Third-Quarter 2026 Results
• Negative Sentiment: Legal scrutiny adds pressure: Several law firms announced investigations into potential securities-law violations related to LKQ’s disclosures. These announcements do not establish wrongdoing, but they add reputational and potential litigation risk following the sharp decline.

Wall Street Analyst Weigh In

LKQ has been the subject of a number of analyst reports. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, August 3rd. Stephens decreased their price target on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Raymond James Financial set a $30.00 price objective on LKQ in a report on Friday, July 31st. JPMorgan Chase & Co. cut their price objective on LKQ from $22.00 to $20.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Roth Capital downgraded LKQ from a “buy” rating to a “neutral” rating and reduced their target price for the company from $35.00 to $18.00 in a report on Monday, October 26th. Five analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, LKQ presently has a consensus rating of “Hold” and a consensus target price of $26.07.

About LKQ

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ’s operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.