LKQ cuts 2025 earnings outlook on soft demand for auto parts
Shares of the company dropped 16% in premarket trading.
Tariff-related uncertainty and higher insurance costs have pressured LKQ's margins and reduced the number of repairable insurance claims.
The company has replaced more than 25% of its leadership team in Europe as it continues to implement cost-saving measures.
LKQ now expects adjusted earnings per share between $3.00 and $3.30 for 2025, down from its previous outlook of $3.40 to $3.70.
The company now expects full-year revenue for parts and services to decline 1.5% to 3.5%, as compared to its previous forecast of 0% to 2% growth.
The Chicago, Illinois-based company reported an adjusted earnings per share of 87 cents for the second-quarter, as compared 98 cents, a year earlier.
LKQ, which also sells scrap and other materials to metal recyclers, second-quarter revenue fell 1.9% to $3.64 billion, from a year earlier.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
a few seconds ago
- Bloomberg
Union Pacific Is Said to Near Deal for Norfolk Southern
By , Ryan Gould, and Kiel Porter Save Union Pacific Corp. could reach an agreement to acquire Norfolk Southern Corp. and create a transcontinental rail behemoth as soon as early next week, people familiar with the matter said. The deal, which would be the largest deal ever in the rail industry, is likely to include both cash and stock, according to the people, who asked not to be identified discussing confidential information.
Yahoo
28 minutes ago
- Yahoo
Eddie Howe Clarifies Isak's Situation Ahead of Arsenal Clash
Eddie Howe confirms no contract talks with Swedish striker amid Liverpool links Eddie Howe Clarifies Isak's Situation Ahead of Arsenal Clash Newcastle United manager Eddie Howe's responded to swirling rumors surrounding the future of Alexander Isak denying any current negotiations over contract renewal with the Swedish forward. No Contract Talks Yet Speaking ahead of Newcastle's pre season friendly against Arsenal, Howe stated: "To my knowledge, there're no ongoing negotiations over Isak's contract. That could happen later" Despite Isak still having three years left on his deal speculation surged this week after the 25 year old missed the club's Asia tour due to reported thigh injury. Behind the Scenes Talks? Multiple outlets including The Athletic & Daily Mail, claim Isak's informed the club he wants clarity on possible move with Liverpool reportedly keen on his signature. However, Howe remained firm but diplomatic: "Isak's been amazing for the team. He's loved in the dressing room. We'd like him to continue his journey with us" He admitted Isak's under pressure: "He knows he'll be in the headlines daily. That's not easy for anyone in this position" €170M Price Tag Set Reports suggest Newcastle've placed 170 million Euro price tag on Isak an amount widely seen as deal breaker for potential buyers.
Yahoo
28 minutes ago
- Yahoo
Famed market bear Albert Edwards warns of an 'everything bubble' in US stocks and home prices that could soon pop
Albert Edwards warns of a potential US stock and housing market bubble. Rising interest rates and Japan's fiscal concerns could trigger market corrections, he said. Edwards publishes his notes under Société Générale's "alternative view." Société Générale's Albert Edwards, famed for calling the dot-com bubble leading up to the 2000 crash, is again warning investors of a potentially painful plunge ahead. In his latest note to clients this week, Edwards said US stocks and home prices are in an "everything bubble" that he thinks could soon pop. Stock valuations are indeed steep. The Shiller cyclically-adjusted price-to-earnings ratio sits at 38, one of its highest levels ever, and both the trailing and forward 12-month PE ratios of the S&P 500 are historically high. To Edwards, this doesn't sit well with the fact that long-term interest rates have been on the rise. Rising long-end government bond yields tend to weigh on stock-market valuations as investors can find attractive returns without taking on the high level of risk in the stock market. Yet US stocks have seen a robust rally in recent years, gaining 78% since October 2022 lows. The market's high valuations have kept future estimated equity-market yields low. When stocks are more cheaply valued, they can expect higher future returns, and vice versa. "It is notable how the US equity market has been able to sustain nose-bleed high valuations despite longer bond yields grinding higher," Edwards wrote. "I don't expect it'll be able to ignore it much longer." On housing, Edwards said that the home price-to-income ratio in the US has been virtually flat over the last few years following the pandemic bump, while the ratio has dropped in countries like the UK and France. "The US is the only market in which house price/income ratios have NOT de-rated since 2022 as bond yields have risen. Is the US housing market also exceptional relative to Europe? No, it's nonsense and, in time, investors will come to claim they knew that all along," Edwards wrote. As for what could cause the potential bubbles in US stocks and home prices to burst, Edwards said to watch Japan. "In the wake of the ruling party coalition losing its Upper House majority, concerns in the bond market about the risks of further fiscal easing and high inflation are growing," he wrote. Higher inflation in Japan could mean higher interest rates and a further unwinding of the Japanese yen carry trade, in which foreign investors borrowed cheaply in yen and converted to dollars to buy higher-yielding US assets. In 2024, the Bank of Japan unexpectedly hiked rates, roiling global markets as investors liquidated assets they had bought with borrowed yen. In May, Edwards warned rising interest rates in Japan could cause a "global financial Armageddon." Edwards publishes his notes, which regularly express a bearish outlook, under Société Générale's "alternative view," separate from the bank's house view. "A lot of clients who totally disagree with me like to read my stuff," he told Business Insider in May. "It's a reality check." Read the original article on Business Insider Sign in to access your portfolio
