LKQ Edges Past Q1 EPS Estimates, Revenue Misses As Tariff Uncertainty Looms

LKQ Corporation LKQ shares were trading higher in the premarket session on Thursday after the company released its first-quarter results.

The company reported quarterly adjusted earnings per share of 79 cents, beating the analyst consensus estimate of 78 cents.

Revenues of $3.46 billion (down 6.5% year over year) missed the street view of $3.56 billion.

“We have formed a dedicated tariff task force comprised of leaders from across our global enterprise to proactively prepare for and navigate the potential opportunities or disruptions that could be caused by the ever-changing tariff landscape,” stated Justin Jude, President and Chief Executive Officer.

Also Read: Northrop Grumman’s Flight Path Recalculated: Analyst Trims Forecast, Reiterates Buy

Quarterly gross margin increased to 39.8% from 39.2% year over year. Adjusted EBITDA in the quarter under review totaled $392 million, compared with $390 million in the year-ago period.

The company exited the quarter with cash and equivalents worth $227 million. Inventories totaled $3.361 billion at quarter end.

Dividend: On April 22, the company declared a quarterly cash dividend of 30 cents per share of common stock, payable on May 29, to stockholders of record at the close of business on May 15.

Outlook:

LKQ affirms FY25 adjusted EPS guidance of $3.40-$3.70 versus the $3.54 estimate.

The firm also maintained the GAAP EPS Guidance of $2.91-$3.21 versus $3.12 estimate.

“We will update our guidance as necessary in future quarters when there is greater clarity regarding the tariff situation,”  stated Rick Galloway, senior vice president and chief financial officer.

Price Action: LKQ shares are trading higher by 2.52% to $43.19 premarket at last check Thursday.

Read Next:

• Rogers Communications Q1 Earnings Beat Expectations, Reiterates Outlook

Photo: Shutterstock