Benzinga | Feb 17, 2021 10:32AM EST

Earnings Outlook for LKQ

LKQ (NASDAQ:LKQ) unveils its next round of earnings this Thursday, February 18. Get prepared with Benzinga's ultimate preview for LKQ's Q4 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

LKQ EPS will likely be near $0.59 while revenue will be around $2.90 billion, according to analysts. In the same quarter last year, LKQ reported earnings per share of $0.54 on sales of $3.01 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be up 9.26%. Revenue would be down 3.65% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.51 0.15 0.52 0.52EPS Actual 0.75 0.53 0.57 0.54Revenue Estimate 2.92 B 2.35 B 3.02 B 3.02 BRevenue Actual 3.05 B 2.63 B 3.00 B 3.01 B

Stock Performance

For a full 12 months, the return has risen by 8.55%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. LKQ is scheduled to hold the call at 08:00:00 ET and can be accessed here.