Auto Parts Provider LKQ Falls Over 13% After Q1 Earnings - Here's Why
Portfolio Pulse from Nabaparna Bhattacharya
LKQ Corporation (NASDAQ:LKQ) shares fell over 13% after reporting Q1 earnings that missed analyst expectations. The company posted adjusted EPS of 82 cents against a consensus of 95 cents, and revenue of $3.7 billion, missing the expected $3.765 billion. Year-over-year net income decreased from $270 million to $158 million. Despite a 10.6% revenue increase, LKQ lowered its FY24 organic revenue growth outlook and maintained its adjusted EPS forecast. The company also declared a quarterly dividend of $0.30 per share.
April 23, 2024 | 2:54 pm
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LKQ Corporation's Q1 earnings miss and lowered FY24 outlook led to a 13% drop in its stock price. The company reported lower than expected EPS and revenue, and adjusted its future revenue growth projections.
LKQ's significant stock price drop is directly attributed to its Q1 earnings miss and the subsequent adjustment of its FY24 revenue outlook. The earnings miss, coupled with lowered future revenue projections, has likely shaken investor confidence, leading to a negative short-term impact on the stock price.
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