LKQ - Why LKQ Stock Sputtered This Week
2023-10-27 16:47:50 ET
Auto parts company LKQ (NASDAQ: LKQ) wasn't exactly driving its shareholders on the fast track to wealth these past few days. According to data compiled by S&P Global Market Intelligence , those shares fell by more than 10% in value over the course of the week. This was in the wake of the company's latest earnings report, which many considered to be disappointing.
On Tuesday, LKQ published its third quarter results, revealing that it earned $3.6 billion in revenue. That figure was 15% higher on a year-over-year basis. When recent acquisitions and divestments are stripped out of the equation, however, that growth rate falls to 2%. As for profitability, according to non- GAAP (adjusted) standards, net income declined by 13% to $231 million, or $0.86 per share.
This meant a mixed quarter for LKQ. On one hand, that $3.6 billion on the top line beat the average analyst estimate of $3.47 billion. On the other, that per-share net income number was well short of the collective $0.97 prognosticator expectation.
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Why LKQ Stock Sputtered This Week