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UPDATE 1-LKQ Corp Q4 earnings beat Street view
February 25, 2010 / 1:00 PM / 8 years ago

UPDATE 1-LKQ Corp Q4 earnings beat Street view

* Q4 adj EPS $0.23 vs est. $0.21/shr

* Revenue up 20 pct

* Sees present trends to support higher demand

Feb 25 (Reuters) - Automobile-parts recycler LKQ Corp LKQX.O posted better-than-expected quarterly results, mainly helped by a rise in demand for its collision repair products, and said it expects higher demand for its products in 2010.

For the fourth quarter, the company reported net income from continuing operations of $36.5 million, or 25 cents a share, compared with $14.3 million, or 10 cents a share a year ago.

Excluding items, it earned 23 cents a share. Revenue rose about 20 percent to $555.9 million.

Analysts on average were expecting earnings of 21 cents a share, before items, on revenue of $525.9 million, according to Thomson Reuters I/B/E/S.

“The fourth quarter was particularly strong and reflected a continued trend to expand the use of alternative collision parts,” Chief Executive Joseph Holsten said in a statement.

For 2010, LKQ forecast earnings of $1.00 to $1.06 a share and said expects revenue from parts and services is to grow organically at a rate of 6 percent to 8 percent. [ID:nWNAB1823]

“We anticipate that the current trends of improving miles driven and expansion in the utilization of alternative parts for collision repairs will continue in 2010 and support higher demand for the products we sell,” said Holsten.

The company sources used and damaged vehicles and dismantles them to obtain a range of vehicle products that it distributes into the light vehicle repair market.

Shares of LKQ Corp closed at $18.94 Wednesday on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Saumyadeb Chakrabarty)

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