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LKQ Corporation's (LKQ) Q2 Earnings: Is a Beat in Store?
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LKQ Corporation (LKQ - Free Report) is set to report second-quarter 2018 results before the opening bell on Jul 26.
In the last reported quarter, the company delivered a negative surprise of 6.8%. Per the earnings record, the company missed estimates in two of the trailing four quarters while beating earnings on the other two occasions. The average earnings surprise was negative.
In the past six months, shares of LKQ Corporation have underperformed the industry it belongs to. The stock has plunged 21.2% compared with the industry’s 8.9% decline.
Let’s see, how things have shaped up for the upcoming announcement.
According to our quantitative model, chances of LKQ Corporation beating the Zacks Consensus Estimate in the second quarter are high. This is because, it has the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #3 (Hold) or better, which is required to increase 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: Earnings ESP for LKQ Corporation is +2.43%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 59 cents and 58 cents, respectively.
Zacks Rank: LKQ Corporation currently sports a Zacks Rank #1 (Strong Buy). This, when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving Better-Than-Expected Earnings?
LKQ Corporation focuses on the growing footprint through organic expansion and acquisitions. In 2017, the company completed total 26 acquisitions. Further, its acquisition revenues witnessed growth of 9.1% in 2017. For 2018, the company expects organic revenue growth for parts & services to be 4-5.5% in comparison with the prior guidance of 4-6%. Benefits of organic expansion and acquisitions are likely to positively impact second-quarter 2018 results.
The Zacks Consensus Estimate for second-quarter 2018 revenues for the Parts and Services segment is $2.8 billion. In first-quarter 2018, revenues from the Parts and Services segment were $2.6 billion.
Other Stocks to Consider
Here are a few other auto stocks worth considering, comprising the right combination of elements to deliver an earnings beat this time around:
Visteon Corporation (VC - Free Report) has an Earnings ESP of +6.15% and a Zacks Rank #2 (Buy). The company’s second-quarter 2018 financial results are scheduled to be released on Jul 26.
Fox Factory Holding Corp. (FOXF - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are scheduled to be released on Aug 1.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are expected to be released on Aug 3.
Looking for Stocks With Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
LKQ Corporation's (LKQ) Q2 Earnings: Is a Beat in Store?
LKQ Corporation (LKQ - Free Report) is set to report second-quarter 2018 results before the opening bell on Jul 26.
In the last reported quarter, the company delivered a negative surprise of 6.8%. Per the earnings record, the company missed estimates in two of the trailing four quarters while beating earnings on the other two occasions. The average earnings surprise was negative.
In the past six months, shares of LKQ Corporation have underperformed the industry it belongs to. The stock has plunged 21.2% compared with the industry’s 8.9% decline.
Let’s see, how things have shaped up for the upcoming announcement.
LKQ Corporation Price and EPS Surprise
LKQ Corporation Price and EPS Surprise | LKQ Corporation Quote
Is Positive Surprise Likely?
According to our quantitative model, chances of LKQ Corporation beating the Zacks Consensus Estimate in the second quarter are high. This is because, it has the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #3 (Hold) or better, which is required to increase 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: Earnings ESP for LKQ Corporation is +2.43%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 59 cents and 58 cents, respectively.
Zacks Rank: LKQ Corporation currently sports a Zacks Rank #1 (Strong Buy). This, when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving Better-Than-Expected Earnings?
LKQ Corporation focuses on the growing footprint through organic expansion and acquisitions. In 2017, the company completed total 26 acquisitions. Further, its acquisition revenues witnessed growth of 9.1% in 2017. For 2018, the company expects organic revenue growth for parts & services to be 4-5.5% in comparison with the prior guidance of 4-6%. Benefits of organic expansion and acquisitions are likely to positively impact second-quarter 2018 results.
The Zacks Consensus Estimate for second-quarter 2018 revenues for the Parts and Services segment is $2.8 billion. In first-quarter 2018, revenues from the Parts and Services segment were $2.6 billion.
Other Stocks to Consider
Here are a few other auto stocks worth considering, comprising the right combination of elements to deliver an earnings beat this time around:
Visteon Corporation (VC - Free Report) has an Earnings ESP of +6.15% and a Zacks Rank #2 (Buy). The company’s second-quarter 2018 financial results are scheduled to be released on Jul 26.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory Holding Corp. (FOXF - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are scheduled to be released on Aug 1.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are expected to be released on Aug 3.
Looking for Stocks With Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>