LKQ (NASDAQ:LKQ) Releases Quarterly Earnings Results, Misses Expectations By $0.11 EPS

LKQ (NASDAQ:LKQ) announced its earnings results on Thursday. The auto parts company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.61 by ($0.11), FiscalAI reports. LKQ had a return on equity of 10.84% and a net margin of 3.37%. The company had revenue of $3.32 billion for the quarter, compared to the consensus estimate of $3.36 billion. During the same period in the previous year, the firm posted $0.84 EPS. The business’s quarterly revenue 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

LKQ stock traded up $0.91 during mid-day trading on Thursday, reaching $18.10. 8,389,137 shares of the company were exchanged, compared to its average volume of 5,194,082. The company has a fifty day simple moving average of $22.91 and a 200-day simple moving average of $27.29. LKQ has a 12 month low of $16.85 and a 12 month high of $37.13. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.58 and a quick ratio of 0.61. The firm has a market cap of $4.58 billion, a PE ratio of 6.21 and a beta of 0.87.

LKQ Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Thursday, November 19th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $1.20 dividend on an annualized basis and a yield of 6.6%. LKQ’s dividend payout ratio is currently 66.67%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on LKQ shares. Weiss Ratings downgraded shares of LKQ from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, August 13th. Stephens reduced their price objective on LKQ from $39.00 to $36.50 and set an “overweight” rating for the company in a report on Tuesday, July 21st. Jefferies Financial Group reaffirmed a “buy” rating and issued a $30.00 target price on shares of LKQ in a research report on Friday, October 23rd. Zacks Research lowered LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, August 3rd. Finally, Raymond James Financial set a $30.00 price target on LKQ in a report on Friday, July 31st. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $27.07.

LKQ News Summary

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Barclays upgraded LKQ to Overweight from Equal Weight, providing a more favorable analyst view after the stock’s significant decline. Barclays upgrades LKQ
• Positive Sentiment: LKQ maintained its quarterly dividend of $0.30 per share, equal to $1.20 annually and a reported yield of approximately 6.6%. The dividend is payable December 3 to shareholders of record November 19. LKQ dividend announcement
• Positive Sentiment: Management announced an operational reset focused on improving performance and profitability, which may give investors a clearer turnaround plan following weak results. LKQ operational reset
• Neutral Sentiment: Third-quarter adjusted EPS was $0.50. That exceeded the Zacks consensus estimate of $0.48, but fell short of the broader analyst consensus of $0.61 and declined from $0.84 a year earlier. Revenue of $3.32 billion also missed the $3.36 billion estimate and fell 5.1% year over year. LKQ third-quarter results
• Negative Sentiment: LKQ suspended its full-year 2026 guidance and paused its strategic review, citing underperformance in Europe and weaker organic revenue in North America. The loss of near-term visibility is a significant risk for investors. LKQ suspends guidance
• Negative Sentiment: Several law firms announced investigations into potential securities-law violations and alleged misleading company disclosures. These announcements may add reputational, regulatory and litigation risks, although no wrongdoing has been established. LKQ securities investigation
• Negative Sentiment: Zacks placed LKQ on its Strong Sell list, while Robert W. Baird cut its price target, reinforcing concerns about earnings momentum and execution. Zacks Strong Sell list

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.