Zacks Research Has Negative Outlook for LKQ Q2 Earnings

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for LKQ to $0.72 from $0.79 and kept a Hold rating, signaling a softer near-term outlook.
• Despite the lower short-term forecast, Zacks raised several longer-term earnings estimates, including FY2028 EPS to $3.50, suggesting improving profit expectations further out.
• LKQ recently reported Q1 earnings of $0.67 per share, in line with estimates, and revenue of $3.47 billion above expectations; the company also declared a quarterly dividend of $0.30 per share.

LKQ Corporation (NASDAQ:LKQ - Free Report) - Equities research analysts at Zacks Research reduced their Q2 2026 earnings estimates for shares of LKQ in a research note issued to investors on Thursday, May 21st. Zacks Research analyst Team now forecasts that the auto parts company will earn $0.72 per share for the quarter, down from their previous forecast of $0.79. Zacks Research has a "Hold" rating on the stock. The consensus estimate for LKQ's current full-year earnings is $3.00 per share. Zacks Research also issued estimates for LKQ's Q4 2026 earnings at $0.73 EPS, FY2026 earnings at $2.97 EPS, Q2 2027 earnings at $0.81 EPS, Q3 2027 earnings at $0.92 EPS, Q4 2027 earnings at $0.83 EPS, Q1 2028 earnings at $0.83 EPS and FY2028 earnings at $3.50 EPS.

LKQ has been the topic of several other research reports. Barclays lowered their price objective on shares of LKQ from $34.00 to $33.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 7th. Wall Street Zen cut LKQ from a "buy" rating to a "hold" rating in a research note on Sunday, February 22nd. JPMorgan Chase & Co. lowered their price target on LKQ from $40.00 to $37.00 and set an "overweight" rating on the stock in a research report on Monday, February 23rd. Finally, Weiss Ratings raised LKQ from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, May 4th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $42.33.

LKQ Stock Up 3.9%

LKQ stock opened at $26.88 on Friday. The company's 50 day moving average is $29.08 and its 200 day moving average is $30.71. The stock has a market cap of $6.85 billion, a price-to-earnings ratio of 13.31 and a beta of 0.88. LKQ has a 1-year low of $23.98 and a 1-year high of $40.94. The company has a current ratio of 1.54, a quick ratio of 0.60 and a debt-to-equity ratio of 0.51.

LKQ (NASDAQ:LKQ - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The auto parts company reported $0.67 EPS for the quarter, meeting analysts' consensus estimates of $0.67. The firm had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.39 billion. LKQ had a net margin of 3.71% and a return on equity of 11.65%. The business's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.79 EPS. LKQ has set its FY 2026 guidance at 2.900-3.200 EPS.

Institutional Trading of LKQ

Several large investors have recently modified their holdings of LKQ. Harbor Investment Advisory LLC increased its holdings in LKQ by 260.0% during the 1st quarter. Harbor Investment Advisory LLC now owns 900 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 650 shares during the period. Rossby Financial LCC lifted its holdings in LKQ by 159.4% in the 3rd quarter. Rossby Financial LCC now owns 882 shares of the auto parts company's stock worth $27,000 after buying an additional 542 shares during the period. Cedar Mountain Advisors LLC bought a new stake in shares of LKQ in the 1st quarter worth approximately $28,000. Essential Partners LLC purchased a new position in shares of LKQ during the first quarter valued at approximately $30,000. Finally, Torren Management LLC bought a new position in shares of LKQ during the fourth quarter valued at approximately $32,000. 95.63% of the stock is owned by institutional investors.

LKQ Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Thursday, May 21st. LKQ's dividend payout ratio (DPR) is 59.41%.

Key LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Zacks Research nudged several future earnings estimates higher, including Q4 2026, Q3 2027, Q4 2027 and FY2028, suggesting improving long-term profit expectations for LKQ. LKQ analyst estimates update
• Positive Sentiment: The firm’s updated FY2028 EPS estimate rose to $3.50, reinforcing the view that earnings could trend higher over time even though Zacks kept a Hold rating. LKQ long-term earnings estimate
• Neutral Sentiment: Zacks also trimmed some near-term estimates, including Q2 2026 EPS and FY2026 EPS, so the outlook is mixed in the nearer term. LKQ near-term earnings estimate changes
• Negative Sentiment: Multiple law firms filed or promoted securities class action lawsuits against LKQ, which can create legal uncertainty and weigh on investor sentiment. LKQ securities fraud lawsuit alert

About LKQ

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.

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