Baird Maintains Outperform on LKQ, Lowers Price Target to $54
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
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Should l Buy LKQ?
Source: Benzinga
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Analyst Views on LKQ
Wall Street analysts forecast LKQ stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 31.580
Low
33.00
Averages
41.25
High
50.00
Current: 31.580
Low
33.00
Averages
41.25
High
50.00
About LKQ
LKQ Corporation is a provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The Company offers its customers a range of original equipment manufacturer (OEM) recycled and aftermarket parts, replacement systems, components, equipment, and services. Its Wholesale - North America segment provides alternative vehicle collision replacement products, paint and body repair related products, and alternative vehicle mechanical replacement products, with its sales, processing, and distribution facilities reaching major markets in the United States and Canada. Its Europe segment provides alternative vehicle replacement and maintenance products in Germany, the United Kingdom, the Benelux region (Belgium, Netherlands, and Luxembourg), Italy, Czech Republic, Austria, Slovakia, France and other European countries. Its Specialty segment is a distributor of specialty vehicle aftermarket equipment and accessories across the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
LKQ Corporation Q1 2026 Earnings Call Insights
- Revenue Performance: LKQ Corporation reported revenues of $3.5 billion in Q1, a 4.3% year-over-year increase, although adjusted EPS fell to $0.67 from $0.74 last year, indicating challenges faced during market recovery.
- North American Market Dynamics: Organic revenue in North America declined 0.5% on a per day basis, showing sequential improvement from a 1% decline in Q4, suggesting the company is gradually adapting to market changes and enhancing operational efficiency.
- Cost Savings Initiatives: The company expects to realize over $50 million in annual cost savings in 2026, primarily through ERP migration and optimized operational processes, aimed at enhancing long-term profitability.
- Strategic Review Progress: Management has engaged Bank of America Securities and Goldman Sachs to evaluate a range of alternatives to maximize long-term shareholder value, although they caution investors not to expect immediate updates, reflecting a cautious outlook on market recovery.
See More
LKQ Corporation Faces Class Action Lawsuit
- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against LKQ Corporation, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiffs by June 22, 2026, to safeguard their interests.
- Financial Warning: On April 23, 2024, LKQ lowered its financial guidance due to weak demand in the North American market, resulting in a 14.9% drop in stock price to $41.65 per share, highlighting challenges in integrating the Uni-Select acquisition.
- Disappointing Earnings: In Q2 2024, LKQ reported revenue misses and further reduced its annual guidance, causing a 12.4% decline in stock price to $38.95 per share, reflecting ongoing integration issues and intensified market competition.
- Market Share Loss: On April 24, 2025, LKQ disclosed that the FinishMaster business continued to lose market share, leading to missed revenue and margin targets, with stock price falling 11.6% to $37.26 per share, indicating severe pressure from competitors' pricing strategies.
See More
LKQ Corporation Securities Class Action Reminder
- Filing Deadline: ClaimsFiler reminds investors that those who purchased LKQ Corporation shares between February 27, 2023, and July 23, 2025, must file lead plaintiff applications by June 22, 2026, to participate in the securities class action lawsuit, ensuring their rights are protected.
- Lawsuit Background: LKQ and certain executives are charged with failing to disclose material information during the class period, violating federal securities laws, related to the FinishMaster acquisition completed in August 2023 and subsequent integration, which could impact the company's reputation and shareholder confidence.
- Declining Financial Performance: On July 24, 2025, LKQ reported second-quarter adjusted earnings that missed analyst expectations and significantly cut its full-year guidance, with the Wholesale North America segment's margin performance declining, missing EBITDA targets by approximately $20 million and suffering an 11% year-over-year decline, indicating increased competitive pressure in the industry.
- Stock Price Reaction: Following the disappointing financial news, LKQ's share price fell by 17.8%, or $6.88 per share, reflecting market concerns about the company's future performance and potentially leading to further erosion of investor confidence.
See More
Reminder of Securities Fraud Lawsuit for LKQ Corporation Investors
- Financial Guidance Cut: On April 23, 2024, LKQ Corporation lowered its full-year financial guidance due to worsening performance in North America, resulting in a 14.9% drop in stock price to $41.65, significantly impacting investor confidence.
- Q2 Earnings Miss: On July 25, 2024, LKQ reported second-quarter results that missed expectations, leading to a 12.4% decline in stock price to $35.93, indicating ongoing weakness in the North American market and further eroding investor trust.
- Integration Issues: On April 24, 2025, LKQ disclosed that its Wholesale North America segment missed revenue targets by approximately $200 million, causing an 11.6% drop in stock price to $37.26, highlighting the negative impact of the FinishMaster integration on profitability.
- Increased Competition Losses: On July 24, 2025, LKQ reported continued margin deterioration, with a 17.8% drop in stock price to $31.73, revealing significant business losses due to competitors gaining market share, further compounding investor losses.
See More
LKQ Declares Quarterly Dividend of $0.30 per Share
- Quarterly Dividend Announcement: LKQ has declared a quarterly dividend of $0.30 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 3.8% offers a relatively attractive return in the current market environment, potentially enhancing investor interest in the company's stock.
- Payment Schedule: The dividend is payable on June 4, with a record date of May 21 and an ex-dividend date also on May 21, providing investors with a clear timeline to inform their investment decisions.
- Financial Performance Context: LKQ's recent financial results show a non-GAAP EPS of $0.67 for Q4 2025, with revenue of $3.5 billion exceeding expectations by $110 million, highlighting the company's competitive position and growth potential in the market.
See More
LKQ Reports Q1 Results in Line with Expectations
- Earnings Highlights: LKQ's Q1 non-GAAP EPS of $0.67 aligns with expectations, indicating the company's stability in the current economic environment.
- Revenue Performance: The company reported revenue of $3.5 billion, flat year-over-year, exceeding market expectations by $110 million, demonstrating its ongoing competitiveness in the parts and services market.
- 2026 Outlook: Management reaffirmed the 2026 financial outlook, projecting organic revenue growth between -0.5% and 1.5%, reflecting cautious optimism about future market conditions.
- Profitability Forecast: The adjusted EPS target is set at $2.90 to $3.20, with operating cash flow and free cash flow expectations remaining unchanged, showcasing the company's robust cash management strategy.
See More
LKQ Corporation Q1 2026 Earnings Call Insights
- Revenue Performance: LKQ Corporation reported revenues of $3.5 billion in Q1, a 4.3% year-over-year increase, although adjusted EPS fell to $0.67 from $0.74 last year, indicating challenges faced during market recovery.
- North American Market Dynamics: Organic revenue in North America declined 0.5% on a per day basis, showing sequential improvement from a 1% decline in Q4, suggesting the company is gradually adapting to market changes and enhancing operational efficiency.
- Cost Savings Initiatives: The company expects to realize over $50 million in annual cost savings in 2026, primarily through ERP migration and optimized operational processes, aimed at enhancing long-term profitability.
- Strategic Review Progress: Management has engaged Bank of America Securities and Goldman Sachs to evaluate a range of alternatives to maximize long-term shareholder value, although they caution investors not to expect immediate updates, reflecting a cautious outlook on market recovery.
See More
LKQ Corporation Faces Class Action Lawsuit
- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against LKQ Corporation, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiffs by June 22, 2026, to safeguard their interests.
- Financial Warning: On April 23, 2024, LKQ lowered its financial guidance due to weak demand in the North American market, resulting in a 14.9% drop in stock price to $41.65 per share, highlighting challenges in integrating the Uni-Select acquisition.
- Disappointing Earnings: In Q2 2024, LKQ reported revenue misses and further reduced its annual guidance, causing a 12.4% decline in stock price to $38.95 per share, reflecting ongoing integration issues and intensified market competition.
- Market Share Loss: On April 24, 2025, LKQ disclosed that the FinishMaster business continued to lose market share, leading to missed revenue and margin targets, with stock price falling 11.6% to $37.26 per share, indicating severe pressure from competitors' pricing strategies.
See More
LKQ Corporation Securities Class Action Reminder
- Filing Deadline: ClaimsFiler reminds investors that those who purchased LKQ Corporation shares between February 27, 2023, and July 23, 2025, must file lead plaintiff applications by June 22, 2026, to participate in the securities class action lawsuit, ensuring their rights are protected.
- Lawsuit Background: LKQ and certain executives are charged with failing to disclose material information during the class period, violating federal securities laws, related to the FinishMaster acquisition completed in August 2023 and subsequent integration, which could impact the company's reputation and shareholder confidence.
- Declining Financial Performance: On July 24, 2025, LKQ reported second-quarter adjusted earnings that missed analyst expectations and significantly cut its full-year guidance, with the Wholesale North America segment's margin performance declining, missing EBITDA targets by approximately $20 million and suffering an 11% year-over-year decline, indicating increased competitive pressure in the industry.
- Stock Price Reaction: Following the disappointing financial news, LKQ's share price fell by 17.8%, or $6.88 per share, reflecting market concerns about the company's future performance and potentially leading to further erosion of investor confidence.
See More
Reminder of Securities Fraud Lawsuit for LKQ Corporation Investors
- Financial Guidance Cut: On April 23, 2024, LKQ Corporation lowered its full-year financial guidance due to worsening performance in North America, resulting in a 14.9% drop in stock price to $41.65, significantly impacting investor confidence.
- Q2 Earnings Miss: On July 25, 2024, LKQ reported second-quarter results that missed expectations, leading to a 12.4% decline in stock price to $35.93, indicating ongoing weakness in the North American market and further eroding investor trust.
- Integration Issues: On April 24, 2025, LKQ disclosed that its Wholesale North America segment missed revenue targets by approximately $200 million, causing an 11.6% drop in stock price to $37.26, highlighting the negative impact of the FinishMaster integration on profitability.
- Increased Competition Losses: On July 24, 2025, LKQ reported continued margin deterioration, with a 17.8% drop in stock price to $31.73, revealing significant business losses due to competitors gaining market share, further compounding investor losses.
See More
LKQ Declares Quarterly Dividend of $0.30 per Share
- Quarterly Dividend Announcement: LKQ has declared a quarterly dividend of $0.30 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 3.8% offers a relatively attractive return in the current market environment, potentially enhancing investor interest in the company's stock.
- Payment Schedule: The dividend is payable on June 4, with a record date of May 21 and an ex-dividend date also on May 21, providing investors with a clear timeline to inform their investment decisions.
- Financial Performance Context: LKQ's recent financial results show a non-GAAP EPS of $0.67 for Q4 2025, with revenue of $3.5 billion exceeding expectations by $110 million, highlighting the company's competitive position and growth potential in the market.
See More
LKQ Reports Q1 Results in Line with Expectations
- Earnings Highlights: LKQ's Q1 non-GAAP EPS of $0.67 aligns with expectations, indicating the company's stability in the current economic environment.
- Revenue Performance: The company reported revenue of $3.5 billion, flat year-over-year, exceeding market expectations by $110 million, demonstrating its ongoing competitiveness in the parts and services market.
- 2026 Outlook: Management reaffirmed the 2026 financial outlook, projecting organic revenue growth between -0.5% and 1.5%, reflecting cautious optimism about future market conditions.
- Profitability Forecast: The adjusted EPS target is set at $2.90 to $3.20, with operating cash flow and free cash flow expectations remaining unchanged, showcasing the company's robust cash management strategy.
See More
