LKQ Misses Q2 Revenue and EPS, Slashes 2026 Outlook on European Weakness
LKQ is trading near its 52-week low of $23.975 (0.0% above the low).
Summary
LKQ's Q2 revenue fell 3% to $3.4B, missing the $3.48B consensus, while adjusted EPS of $0.67 missed the $0.71 estimate. The company slashed its 2026 organic revenue growth outlook to a decline of 3% to 1%, down from prior guidance of a 0.5% decline to 1.5% growth, and cut diluted EPS guidance to $1.78-$2.08 from $2.16-$2.46. European operations underperformed due to ERP implementation issues in Germany and lower volumes in the UK and Benelux, overshadowing a return to positive organic growth in North America for the first time in nine quarters. The company also cut its annual profit forecast, citing softer auto parts demand in Europe. The stock is trading near its 52-week low, and this guidance cut deepens concerns about the pace of recovery. The company repurchased 1.9 million shares for $52 million in Q2, but the buyback is modest relative to the earnings reset. With the shares at 8x forward earnings, the multiple compression reflects skepticism about the turnaround.
At the time of this announcement, LKQ was trading at $23.98 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $6.7B. The 52-week trading range was $23.98 to $37.13. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.