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

LKQ (NASDAQ:LKQ) released its earnings results on Thursday. The auto parts company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by ($0.11), FiscalAI reports. The firm had revenue of $3.32 billion during the quarter, compared to analyst estimates of $3.36 billion. LKQ had a net margin of 3.37% and a return on equity of 10.84%. LKQ’s quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.84 EPS.

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 Stock Performance

Shares of NASDAQ:LKQ traded up $0.28 during trading on Friday, hitting $18.38. The company’s stock had a trading volume of 1,247,259 shares, compared to its average volume of 3,207,154. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.58 and a quick ratio of 0.61. LKQ has a 12 month low of $16.85 and a 12 month high of $37.13. The firm has a market cap of $4.65 billion, a price-to-earnings ratio of 10.21 and a beta of 0.87. The company has a 50-day moving average of $22.91 and a 200-day moving average of $27.29.

LKQ Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Thursday, November 19th will be issued a $0.30 dividend. The ex-dividend date is Thursday, November 19th. This represents a $1.20 annualized dividend and a yield of 6.5%. LKQ’s dividend payout ratio (DPR) is currently 66.67%.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ declared a quarterly dividend of $0.30 per share, or $1.20 annualized, representing a roughly 6.6% yield at the cited share price. The dividend supports the stock’s income appeal, although investors may scrutinize its sustainability as earnings weaken. LKQ quarterly dividend announcement
• Neutral Sentiment: LKQ said it is launching a strategic operational reset focused on improving execution, profitability, and performance in Europe. Management also paused its strategic review, removing a potential near-term catalyst while it addresses business issues. LKQ third-quarter operational reset
• Negative Sentiment: Third-quarter revenue fell 5.1% year over year to $3.32 billion, below the approximately $3.36 billion analyst estimate. Adjusted earnings were $0.50 per share, below the broader $0.61 consensus and down from $0.84 a year earlier, reflecting weaker operating performance. LKQ third-quarter 2026 results
• Negative Sentiment: LKQ suspended its full-year 2026 guidance after results in Europe lagged expectations, including problems associated with its enterprise resource planning rollout. The lack of guidance increases uncertainty around earnings and cash-flow forecasts. LKQ suspends 2026 guidance
• Negative Sentiment: Several law firms announced investigations into potential securities-law violations tied to LKQ’s disclosures. The allegations have not been proven, but the announcements add reputational and potential litigation risk. LKQ securities investigation

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Raymond James Financial set a $30.00 target price on LKQ in a research report on Friday, July 31st. Barclays raised shares of LKQ from an “equal weight” rating to an “overweight” rating and set a $25.00 target price on the stock in a report on Monday. Robert W. Baird decreased their price objective on LKQ from $30.00 to $23.00 and set an “outperform” rating on the stock in a research note on Monday. Jefferies Financial Group restated a “buy” rating and issued a $30.00 price objective on shares of LKQ in a research report on Friday, October 23rd. Finally, JPMorgan Chase & Co. decreased their price target on shares of LKQ from $30.00 to $27.00 and set an “overweight” rating on the stock in a report on Thursday, October 8th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, LKQ currently has a consensus rating of “Hold” and an average target price of $27.07.

LKQ Company Profile

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.