Stock of the Day

February 23, 2021

LKQ (LKQ)

$25.13
-$0.40 (-1.6%)
Market Cap: $6.46B

About LKQ

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.

Today's Trend

LKQ Corporation (NASDAQ: LKQ) is facing negative sentiment after Zacks Research made a broad series of earnings-estimate reductions and maintained a “Strong Sell” rating. The revisions suggest analysts see weaker near- and longer-term profitability than previously expected, putting pressure on the shares.

  • Zacks cut its FY2026 EPS forecast to $2.68 from $2.97 and reduced its Q3 2026 estimate to $0.71 from $0.85, signaling lower expectations for the company’s immediate operating performance.
  • Estimates for FY2027 were lowered to $2.98 EPS from $3.30. Quarterly forecasts were also reduced for Q1 2027 to $0.69 from $0.75 and Q2 2027 to $0.74 from $0.81.
  • Zacks reduced its Q3 2027 forecast to $0.80 EPS from $0.92 and its Q4 2027 estimate to $0.74 from $0.83, indicating that the weakness is expected to extend through much of 2027.
  • The firm also lowered its FY2028 EPS estimate to $3.33 from $3.50 and cut its Q1 2028 forecast to $0.80 from $0.83. While the revised FY2028 outlook still implies growth from earlier years, the downward revision is a negative signal for valuation and investor confidence.

The estimate cuts add to concerns following LKQ’s latest reported quarter, when revenue declined year over year and earnings came in below analysts’ expectations. The current full-year consensus is approximately $2.67 EPS, broadly in line with Zacks’ revised FY2026 view. With the stock trading below its 200-day moving average, the repeated forecast reductions and “Strong Sell” rating are likely the primary reasons sentiment has weakened.

← Previous Stock of the DayNext Stock of the Day →

Recent News