'High-Quality' Q4 Miss Keeps Stifel at Buy on LKQ Corp. (LKQ)

February 27, 2014 11:15 AM EST Send to a Friend
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Price: $28.79 -0.1%

Rating Summary:
    6 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Stifel is maintaining its Buy rating and $39 price target on LKQ Corp. (Nasdaq: LKQ) following the company's Q4 results issued Thursday morning.

Analyst James Albertine commented that the EPS miss (Q4: $0.26 vs. $0.28 est'd.) was high-quality given higher than expected operating expenses were the primary culprit and gross margin exceeded our estimate by +70 bp (41.4% of sales vs. our 40.7% estimate).

Albertine on FY14 guidance: LKQ provided FY14 EPS guidance of $1.30-1.40 (relative to our current $1.38 estimate), primarily driven by organic parts and services sales growth of +8%-10% (relative to our current +7.5% estimate). LKQ also expects to generate $375 mm in cash flow from operations (vs. $428 mm in FY13) and incur $110-$140 mm in capital expenditures (vs. $88 mm net of P&E sales proceeds in FY13) during FY14.

For an analyst ratings summary and ratings history on LKQ Corp. click here. For more ratings news on LKQ Corp. click here.

Shares of LKQ Corp. closed at $29.07 yesterday.


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