Advertisement
Canada markets closed
  • S&P/TSX

    22,320.87
    +120.08 (+0.54%)
     
  • S&P 500

    5,304.72
    +36.88 (+0.70%)
     
  • DOW

    39,069.59
    +4.33 (+0.01%)
     
  • CAD/USD

    0.7319
    +0.0035 (+0.48%)
     
  • CRUDE OIL

    77.80
    +0.93 (+1.21%)
     
  • Bitcoin CAD

    94,461.63
    +2,263.89 (+2.46%)
     
  • CMC Crypto 200

    1,448.58
    -19.52 (-1.33%)
     
  • GOLD FUTURES

    2,335.20
    -2.00 (-0.09%)
     
  • RUSSELL 2000

    2,069.67
    +21.26 (+1.04%)
     
  • 10-Yr Bond

    4.4670
    -0.0080 (-0.18%)
     
  • NASDAQ

    16,920.79
    +184.76 (+1.10%)
     
  • VOLATILITY

    11.93
    -0.84 (-6.58%)
     
  • FTSE

    8,317.59
    -21.64 (-0.26%)
     
  • NIKKEI 225

    38,646.11
    -457.11 (-1.17%)
     
  • CAD/EUR

    0.6744
    +0.0011 (+0.16%)
     

Auto parts seller LKQ cuts 2024 sales forecast as warm weather slows demand

(Reuters) - Auto parts distributor LKQ cut its full-year sales forecast on Tuesday and missed estimates for first-quarter profit amid falling metal prices and softening demand for spares in North America.

"Our first-quarter results were below our expectations as our Wholesale – North America segment was confronted with a reduction in repairable claims and the resulting pressure on demand, which we believe is primarily attributable to record warm weather across the United States," CEO Dominick Zarcone said.

LKQ, which also sells scrap and other materials to recyclers, had earlier flagged low commodity prices and said they would continue to be a headwind for its self-service segment.

In the last few months, the Chicago, Illinois-based company has undertaken initiatives to improve profits amid inflated commodity costs and softening demand for specialty vehicles accessories, specifically for recreational vehicles.

ADVERTISEMENT

It now expects to report organic revenue growth for parts and services between 2.5% and 4.5% for 2024, down from its prior guidance of 3.5% to 5.5%.

GAAP per share earnings for the full year are expected to be between $3.32 and $3.62, below the previous guidance of $3.43 and $3.73.

However, LKQ reaffirmed its 2024 adjusted earnings per share outlook of $3.90 to $4.20 on the back of its margin expansion actions.

The firm also said that on April 16, it divested its operations in Slovenia and simultaneously entered into an agreement to divest its Bosnia operations. The terms of the transactions were not disclosed.

LKQ reported adjusted earnings per share of $0.82 for the first quarter, missing analysts' estimate of $0.95 per share, according to LSEG IBES data.

It also posted sales of $3.70 billion for the three months ended March 31, marginally below estimates of $3.76 billion.

(Reporting by Raechel Thankam Job; Editing by Pooja Desai)