LKQ Beats on Both Top and Bottom Lines

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LKQ (NAS: LKQX) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), LKQ beat expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.


Gross margins dropped, operating margins dropped, net margins expanded.

Revenue details
LKQ recorded revenue of $1.03 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.00 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $786.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.50. The nine earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.54 for Q1 were 38% higher than the prior-year quarter's $0.39 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.4%, 30 basis points worse than the prior-year quarter. Operating margin was 13.0%, 70 basis points worse than the prior-year quarter. Net margin was 7.8%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $980.6 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $3.97 billion. The average EPS estimate is $1.82.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 313 members out of 328 rating the stock outperform, and 15 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give LKQ a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LKQ is outperform, with an average price target of $35.45.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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