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Investors in LKQ Corporation (NASDAQ:LKQ) had a good week, as its shares rose 3.5% to close at US$40.49 following the release of its full-year results. LKQ reported in line with analyst predictions, delivering revenues of US$14b and statutory earnings per share of US$2.62, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for LKQ
Following last week's earnings report, LKQ's ten analysts are forecasting 2025 revenues to be US$14.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 18% to US$3.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.5b and earnings per share (EPS) of US$3.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$51.14. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values LKQ at US$60.00 per share, while the most bearish prices it at US$43.30. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that LKQ's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 3.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that LKQ is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that LKQ's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.