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ANTIOCH, Tenn. - On Thursday, LKQ Corporation (NASDAQ:LKQ) reported third quarter adjusted earnings that exceeded analyst expectations, despite facing challenging market conditions in North America.
The auto parts provider’s shares rose 4.33% in pre-market trading after the results.
The company posted adjusted earnings of $0.84 per share for the third quarter, comfortably beating the analyst consensus of $0.76. Revenue came in at $3.5 billion, up 1.3% compared to the same period last year, though slightly below the consensus estimate of $3.54 billion. The company’s North American organic revenue decreased only slightly despite a 6% decline in repairable claims, suggesting market share gains.
Following the successful divestiture of its Self Service segment on September 30, LKQ raised the midpoint and narrowed the range of its full-year earnings outlook. The company now expects adjusted earnings per share of $3.00 to $3.15 for fiscal year 2025, compared to its previous guidance of $2.85 to $3.15.
"Our third quarter results reflect solid performance in multiple areas of the business," said Justin Jude, President and Chief Executive Officer. "We delivered on our commitment to simplify the business with the divestiture of Self Service, continued to gain market share in a down market in North America, bounced back with double digit margins in Europe and achieved more than 9% organic growth in our Specialty business."
The company’s European segment showed resilience with revenue increasing 0.4% YoY, while the Specialty segment demonstrated strong performance with 9.3% revenue growth. LKQ generated robust free cash flow of $387 million during the quarter.
The company continued its shareholder return program, repurchasing 1.2 million shares for approximately $40 million and distributing $78 million in cash dividends during the quarter. LKQ’s board declared a quarterly dividend of $0.30 per share, payable on December 4.
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