LKQ (NASDAQ:LKQ) Posts Earnings Results, Misses Expectations By $0.06 EPS

LKQ (NASDAQ:LKQ) announced its earnings results on Thursday. The auto parts company reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.06), Briefing.com reports. The firm had revenue of $3.31 billion for the quarter, compared to the consensus estimate of $3.24 billion. LKQ had a return on equity of 13.45% and a net margin of 4.99%.LKQ’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter last year, the business posted $0.80 EPS. LKQ updated its FY 2026 guidance to 2.900-3.200 EPS.

Here are the key takeaways from LKQ’s conference call:

• Exceeded the 2025 free cash flow commitment by generating $847 million and completed the divestiture of the self-service segment to simplify the portfolio.
• LKQ’s board initiated a comprehensive strategic review in January 2026 to explore alternative structures aimed at unlocking shareholder value while management maintains focus on operations.
• Persistent headwinds—declining repairable claims, tariffs, and weak European demand—drove organic revenue declines (North America ~-1% Q4, Europe ~-5.2% Q4), a $52 million goodwill impairment, and weaker adjusted EPS, with conservative 2026 guidance (adj. EPS $2.90–$3.20).
• Management is pursuing cost and productivity initiatives including an approved restructuring (~$60–70 million of costs to generate >$50 million in annualized savings), SKU rationalization, and a Europe ERP integration in early Q2 2026 to improve margins.
• The Specialty segment is rebounding—7.8% organic growth in Q4 with improving margins—and the company reports robust interest in a potential sale with updates expected in H1 2026.

LKQ Price Performance

Shares of LKQ traded up $0.43 during midday trading on Thursday, hitting $33.65. The company’s stock had a trading volume of 1,000,762 shares, compared to its average volume of 2,700,884. The company has a quick ratio of 0.67, a current ratio of 1.60 and a debt-to-equity ratio of 0.55. LKQ has a one year low of $28.13 and a one year high of $44.82. The stock has a market capitalization of $8.61 billion, a price-to-earnings ratio of 12.45 and a beta of 0.91. The company’s fifty day simple moving average is $32.32 and its two-hundred day simple moving average is $31.19.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Kennedy Capital Management LLC boosted its stake in shares of LKQ by 41.2% in the 3rd quarter. Kennedy Capital Management LLC now owns 314,467 shares of the auto parts company’s stock valued at $9,604,000 after purchasing an additional 91,776 shares in the last quarter. State of Tennessee Department of Treasury lifted its stake in LKQ by 152.3% in the 4th quarter. State of Tennessee Department of Treasury now owns 78,360 shares of the auto parts company’s stock valued at $2,574,000 after purchasing an additional 47,299 shares during the last quarter. Empowered Funds LLC acquired a new stake in LKQ in the first quarter valued at approximately $1,162,000. Captrust Financial Advisors boosted its position in LKQ by 20.7% in the fourth quarter. Captrust Financial Advisors now owns 102,544 shares of the auto parts company’s stock valued at $3,097,000 after buying an additional 17,605 shares in the last quarter. Finally, Verity Asset Management Inc. bought a new stake in shares of LKQ during the third quarter worth $413,000. Institutional investors own 95.63% of the company’s stock.

Analysts Set New Price Targets

LKQ has been the topic of several research reports. Stephens initiated coverage on shares of LKQ in a research note on Tuesday, December 9th. They issued an “overweight” rating and a $39.00 price target on the stock. Wall Street Zen upgraded shares of LKQ from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of LKQ in a report on Monday, December 29th. Zacks Research cut LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, January 26th. Finally, Barclays began coverage on LKQ in a research note on Tuesday, November 11th. They set an “equal weight” rating and a $33.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $44.33.

LKQ News Roundup

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Board launches strategic-review of alternatives (could unlock value or lead to a sale/take‑private transaction), which investors often view as a potential catalyst for a higher takeover or breakup premium. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Strong cash generation and shareholder returns: operating cash flow of $1.1B, free cash flow $847M, and $116M returned to shareholders in Q4 (repurchases + dividends) — supports valuation and buyback/dividend thesis. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Insiders and some institutions are buying: recent insider purchases and large additions from firms like BlackRock and other reported buys signal confidence and provide demand support under the shares. LKQ ($LKQ) Releases Q4 2025 Earnings
• Neutral Sentiment: Revenue modestly beat estimates and grew 2.7% year-over-year, showing stability in top-line activity but limited upside from growth alone. LKQ (LKQ) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: EPS missed consensus: reported $0.59 vs. ~$0.65 estimate and down from $0.80 a year ago — the earnings shortfall is the primary near-term negative driver. LKQ (LKQ) Lags Q4 Earnings Estimates
• Negative Sentiment: FY2026 EPS guidance of $2.90–$3.20 is slightly below consensus (~$3.21), creating downward pressure on forward multiples and near‑term sentiment. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Negative Sentiment: Some large institutional trimming (reported reductions by firms like UBS and Vanguard in recent quarters) is a headwind for the stock despite other buyers. LKQ ($LKQ) Releases Q4 2025 Earnings

LKQ Company Profile

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.