LKQ Corporation LKQ is slated to release first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 97 cents and $3.26 billion, respectively.
For the first quarter, the consensus estimate for LKQ’s earnings per share has moved down by 3 cents in the past 60 days. Its bottom-line estimates imply a decline of 3% from the year-ago reported number. The Zacks Consensus Estimate for LKQ’s quarterly revenues also suggests a 2.52% year-over-year decrease. Over the trailing four quarters, LKQ surpassed earnings estimates on three out of four occasions and missed in one, the average surprise being 2.93%. This is depicted in the graph below:
LKQ Corporation Price and EPS Surprise
LKQ Corporation price-eps-surprise | LKQ Corporation Quote
Q4 Highlights
In fourth-quarter 2022, LKQ’s adjusted earnings of 78 cents per share missed the consensus mark of 84 cents, owing to lower-than-expected revenues from the Specialty and Self-Service segments. Also, the bottom line fell 10.3% year over year. The company reported net sales of $3,001 million, missing the Zacks Consensus Estimate of $3,014 million. In addition, the top line fell 5.8% from the year-ago level.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: LKQ has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is equal to the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #3.
Factors at Play
The buyouts of Bumblebee Batteries, Elite Electronics, Green Bean Battery, SeaWide Marine Distribution, Greenlight and Fabtech Industries have bolstered the firm’s product offerings as well as sales. The company’s North American and European segments have been performing well. The North American segment continues to benefit from pricing initiatives.
Here's a sneak peek at the firm’s key revenue projections for the to-be-reported quarter.
The Zacks Consensus Estimate for quarterly revenues from parts and services in Europe, which have the highest contribution to the company’s revenues, is pegged at $1,416 million, suggesting an improvement from $1,384 million recorded in the prior quarter. The consensus estimate for revenues from parts and services in North America for the first quarter is pegged at $1,079 million, indicating an increase from $1,025 million recorded in the prior-quarter. The Zacks Consensus Estimate for quarterly revenues from parts and services in the Specialty segment is $457 million, implying growth from $364 million reported in the prior quarter.
On the flip side, LKQ is witnessing some supply chain disruptions, which are resulting in product scarcity and freight delays. Problems related to freight costs and container capacity constraints are likely to have persisted in the first quarter of 2023. Additionally, high R&D costs and unfavorable forex translations are also likely to clip margins in the quarter to be reported.
Stocks With the Favorable Combination
Let’s take a look at some players in the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Lear LEA will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +4.00% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.50 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. MBLY will release first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
The company has an Earnings ESP of +11.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh OSK will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $2.09 billion, respectively. OSK surpassed earnings estimates in one out of the trailing four quarters in fiscal year 2022 while missing in the remaining three, the average negative surprise being 8.82%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Free: See Our Top Stock and 4 Runners Up >>Lear Corporation (LEA) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
LKQ Corporation (LKQ) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
