LKQ Corporation First-Quarter Preview

LKQ is expected to release first-quarter results on Tuesday, April 29, before the markets open and will host a conference call at 9:00 a.m. CDT.

Analysts estimate total revenue will increase 34%, to $1,599 million, including roughly $165 million from the recent acquisition of Keystone Automotive Operations and about $100 million from Sator Beheer, which closed in May 2013.

20% organic growth in Europe driven by Euro Car Parts (ECP) same-store sales growth. This is slower relative to the roughly 30% organic growth seen throughout 2013 because of mild weather that led to fewer battery sales and other seasonal products compared with last year. Despite the negative weather impact, overall trends are positive and that ECP continues to benefit from new store openings and product injections as well as the gradual adoption of collision parts.

4% organic growth in North America, which represents a sequential slowdown from 6% last quarter as harsh winter weather likely kept some drivers off the roads (miles driven declined 1.3% in January, which is the latest available data). We believe accident rates were likely higher for drivers who were on the roads during the inclement weather, which generated demand for repairs that remained pent up until the weather improved. In the areas hit the hardest, better weather did not materialize until late March/April, but the repairs are now getting done.





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