Headquartered in Chicago, Illinois, LKQ Corporation (LKQ) boasts a market capitalization of $10.8 billion and stands as a global leader in the distribution of replacement parts, components, and systems for vehicle repair and maintenance. It is slated to report its fiscal 2025 Q1 earnings before the market opens on Thursday, April 24.

Ahead of this event, analysts expect the vehicle components company to report a profit of $0.79 per share, down 3.7% from $0.82 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In the recent quarter, LKQ posted an EPS of $0.80, exceeding the consensus EPS estimate by 6.7%, due to resilient demand for aftermarket and recycled auto parts, particularly in North America and Europe.

For fiscal 2025, analysts expect LKQ to report an EPS of $3.61, up 3.7% from $3.48 in fiscal 2024. Moreover, its EPS is anticipated to grow 7.8% year-over-year to $3.61 in fiscal 2026.

Shares of LKQ have declined 18.6% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 2.1% surge and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 5.2% return over the period. 

Following the announcement of its Q4 results on Feb. 20, LKQ's stock rallied 6%, as investors responded positively despite the mixed performance. It reported revenue of $3.4 billion, down 4.1% year-over-year, primarily due to a 3.6% decline in organic parts and services revenue. Adjusted net income for the quarter dropped 8.4% to $207 million. 

On the bright side, LKQ Corporation demonstrated its continued commitment to shareholder returns by distributing over $150 million through a combination of share repurchases and dividends. The company invested approximately $80 million to buy back 2.1 million shares of its common stock, signaling confidence in its long-term value. Looking ahead, the company projects adjusted EPS between $3.40 and $3.70 in 2025, with 0% to 2% organic growth in parts and services.

Analysts' consensus view on LKQ Corporation’s stock is very bullish, with a "Strong Buy" rating overall. Among the seven analysts covering the stock, five recommend "Strong Buy," one suggests "Moderate Buy," and one indicates a “Hold” rating.

LKQ’s mean price target of $53 indicates a potential upside of 28.9% from the prevailing price level.