LKQ defended at Stifel after earnings miss

Calling the EPS miss ($0.26 is light by $0.03) high-quality, analyst James Albertine maintains a Buy rating and $39 price target. The culprit, he says, was higher than expected operating expenses, but gross margin exceeded his estimate of 40.7% by 70 basis points.

FY2014 EPS guidance of $1.30-$1.40 compares to his team's $1.38. Organic parts and services growth of 8-10% compares to a 7.5% estimate. The company also expects to generate $375M in operating cash flow vs. $428M in 2013, and incur $110M-$140M in capex vs. $88M in 2013.

LKQ -7.6%

A check of other auto parts stocks: U.S. Auto (PRTS -1.5%), Genuine Parts (GPC -0.5%).

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Comments (1)
  • mjtroll1
    , contributor
    Comments (2793) | Send Message
    the lkq/spy pair is getting near recent lows.. would welcome comments
    10 Jun 2014, 02:35 PM Reply Like
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