LKQ cuts annual profit outlook

WASHINGTON (dpa-AFX) – LKQ Corp. (LKQ), a supplier of alternative auto parts, lowered its annual profit forecast on Thursday.

Rick Galloway, LKQ’s chief financial officer, said: “The headwinds we have experienced in our global operations have had more of an impact than anticipated in our previous forecasts, and we do not currently expect these headwinds to abate over time. fourth trimester. Although our cost actions and the realization of synergies have boosted profitability, the benefits of these actions are not expected to offset the full impact of the expected fourth quarter revenue decline.

For the full year, the company now expects net income per share of between $2.59 and $2.73, compared to a prior forecast of $2.71 to $2.91 per share.

Excluding items, earnings per share are now expected to be between $3.38 and $3.52, compared to the previous forecast of $3.50 to $3.70.

On average, nine analysts surveyed by Thomson Reuters expect the company to earn $3.52 per share for the year. Analyst estimates generally exclude special items.

On October 22, the Board authorized a $1 billion increase in share repurchases, bringing the total authorization to $4.5 billion and thus making a balance of $1.8 billion available for possible additional redemptions until October 25, 2026.

The company had declared a quarterly cash dividend of $0.30 per share, which would be paid on November 27 to shareholders of record on November 14.

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