LKQ Q3 revenue misses estimates on Europe underperformance
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.)