Why LKQ Corporation Stock Was Up Over Last Quarter Despite A Tough Auto Market
LKQ Corporation (NASDAQ: LKQ) is a global distributor of automobile products, that include replacement parts, components, and systems that are used in the repair and maintenance of vehicles. The company’s stock is up by almost 30% year-to-date trading at levels of around $31 currently, with returns over the last quarter coming in at about 20%. The move comes despite the fact that the company posted relatively lackluster Q2 results, while cutting full-year earnings guidance. However, LKQ has benefited from the fact that investment company ValueAct Capital recently indicated in an SEC filing that it had acquired 16 million shares (~5% stake) in the company. This could have sparked investor interest in the stock, which has declined from levels of over $40 last year, driven partly by the underperformance of its European operations. Below, we take a look at the financial performance of the company over the last few years and what the outlook could be like.
View our interactive dashboard analysis on Why LKQ Corporation Stock Has Rallied Over The Last 2 Months
How does LKQ’s Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?
Total Revenues for LKQ significantly increased from $9.74 Bil in 2017 to $11.9 Bil in 2018; an increase of 22.0%. This was due to the acquisition of Stahlgruber, a leading European wholesale distributor of spare parts.
This compares with Total Revenues growth of:
- 6.71% in 2015 compared to 2014
- 19.3% in 2016 compared to 2015
- 13.4% in 2017 compared to 2016
We expect Total Revenues growth to be 5% in 2019.
How does LKQ’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?
Total Expense for LKQ significantly increased from $8.97 Bil in 2017 to $11.1 Bil in 2018; an increase of 24.1%. This was partly due to the Stahlgruber deal.
This compares with Total Expense growth of:
- 6.36% in 2015 compared to 2014
- 20.8% in 2016 compared to 2015
- 13.5% in 2017 compared to 2016
We expect Total Expense growth to be 2.4% in 2019.
How does LKQ’s EBT in 2018 compare with that in prior periods and what’s the forecast?
EBT for LKQ decreased slightly by -3.03% from $767 Mil in 2017 to $743 Mil in 2018.
We expect EBT to increase by 48% to $1.1 Bil in 2019.
How do LKQ’s Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?
For more details on LKQ Corporation’s Net Income and EPS, view our interactive dashboard analysis.
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