Zacks Research Issues Negative Outlook for LKQ Earnings

Key Points

• Zacks Research cut LKQ’s Q3 2026 EPS forecast to $0.71 from $0.85 and maintained a “Strong Sell” rating. Its full-year 2026 estimate is $2.68 per share.
• LKQ’s latest quarterly results missed expectations, with EPS of $0.67 versus $0.71 forecast and revenue of $3.41 billion versus $3.48 billion; revenue declined 3% year over year.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and a $31.08 target price. LKQ also declared a $0.30 quarterly dividend, representing a 4.6% annualized yield.

LKQ Corporation (NASDAQ:LKQ - Free Report) - Research analysts at Zacks Research cut their Q3 2026 EPS estimates for LKQ in a note issued to investors on Thursday, August 20th. Zacks Research analyst Team now anticipates that the auto parts company will earn $0.71 per share for the quarter, down from their prior forecast of $0.85. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for LKQ's current full-year earnings is $2.67 per share. Zacks Research also issued estimates for LKQ's FY2026 earnings at $2.68 EPS, Q1 2027 earnings at $0.69 EPS and Q2 2027 earnings at $0.74 EPS.

LKQ (NASDAQ:LKQ - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The auto parts company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.04). LKQ had a net margin of 3.37% and a return on equity of 10.84%. The firm had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.48 billion. During the same period in the previous year, the firm posted $0.87 earnings per share. The business's revenue was down 3.0% compared to the same quarter last year. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS.

Several other equities research analysts have also recently weighed in on LKQ. Barclays reduced their price target on LKQ from $30.00 to $25.00 and set an "equal weight" rating on the stock in a research note on Monday, August 3rd. Raymond James Financial set a $30.00 target price on shares of LKQ in a report on Friday, July 31st. Robert W. Baird set a $30.00 target price on shares of LKQ in a research report on Friday, July 31st. JPMorgan Chase & Co. decreased their price target on shares of LKQ from $37.00 to $30.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Finally, Stephens lowered their price target on shares of LKQ from $39.00 to $36.50 and set an "overweight" rating for the company in a research report on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $31.08.

LKQ Trading Up 0.5%

LKQ opened at $25.98 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.58 and a debt-to-equity ratio of 0.52. LKQ has a 52 week low of $21.17 and a 52 week high of $37.13. The stock has a market cap of $6.57 billion, a PE ratio of 14.43 and a beta of 0.84. The business has a 50 day moving average of $25.42 and a 200-day moving average of $28.26.

LKQ Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be paid a $0.30 dividend. The ex-dividend date is Thursday, August 20th. This represents a $1.20 dividend on an annualized basis and a yield of 4.6%. LKQ's payout ratio is presently 66.67%.

Institutional Trading of LKQ

Institutional investors and hedge funds have recently bought and sold shares of the company. Integrated Wealth Concepts LLC bought a new stake in shares of LKQ during the first quarter valued at approximately $278,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in LKQ by 2.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company's stock worth $1,339,000 after acquiring an additional 807 shares during the last quarter. Empowered Funds LLC bought a new position in LKQ in the 1st quarter valued at approximately $1,162,000. BI Asset Management Fondsmaeglerselskab A S boosted its stake in LKQ by 170.0% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company's stock valued at $292,000 after purchasing an additional 4,965 shares during the last quarter. Finally, Kennedy Capital Management LLC boosted its stake in LKQ by 41.2% during the 3rd quarter. Kennedy Capital Management LLC now owns 314,467 shares of the auto parts company's stock valued at $9,604,000 after purchasing an additional 91,776 shares during the last quarter. 95.63% of the stock is currently owned by institutional investors.

LKQ Company Profile

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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