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LKQ Q3 revenue misses estimates on Europe underperformance

By Reuters News


Overview

  • US auto parts distributor's preliminary Q3 revenue fell and missed analyst expectations

  • Preliminary adjusted EPS for Q3 declined from prior year

  • Company cited European operational disruptions, withdrew 2026 guidance


Outlook

  • LKQ withdraws full-year 2026 guidance following Europe underperformance and leadership changes

  • LKQ to provide additional updates on strategic alternatives process as appropriate


Result Drivers

  • EUROPEAN UNDERPERFORMANCE - Co said Q3 results primarily reflect significant underperformance in its Europe segment

  • OPERATIONAL DISRUPTIONS - Co cited ERP implementation issues in Germany and volume declines in UK and Benelux as drivers of European weakness

  • ADVISORY ENGAGEMENT - Co retained Alvarez & Marsal to advise on European operations, focusing on stabilizing operations and improving performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$3.32 bln

$3.41 bln (8 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for LKQ Corp is $30.38, about 35.2% above its October 22 closing price of $22.47

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Oct 22 - Valeo posts lower sales as auto industry weakness persists

  • Oct 21 - OPmobility's revenue rises amid reorganization, weak auto market

  • Oct 22 - Deckers results show aggressive discounts from rivals are hitting premium brands


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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