Pomegra
LKQ Stock Plunges 22% After Q3 Earnings Miss
Why did LKQ stock plunge 22%?
LKQ Corp. (LKQ) stock fell 22.5% to $17.42 on Friday after the auto parts seller warned of a third-quarter loss, withdrew its 2026 forecast and replaced its CEO over weak Europe results.
Key numbers
| Q3 revenue (preliminary) | $3.32B-5.1% vs $3.50B |
|---|---|
| Q3 net result (preliminary) | -$16M to -$32Mvs $178M profit |
| Europe organic sales | -9.8%like-for-like, parts and services |
| Europe profit margin (EBITDA) | 4.1%–5.1%vs 10.0% a year ago |
| LKQ share price | $17.42-22.5% vs $22.47 prior close |
| Early-session move | -19%$18.22 quote, conflicts with later $17.42 (per [3]) |
What happened
LKQ Corp. (LKQ) stock fell 22.5% to $17.42 on Friday after the auto parts seller warned of a third-quarter loss, withdrew its 2026 forecast and replaced its CEO over weak Europe results. LKQ expects sales of $3.32 billion, down from $3.50 billion a year ago, and a net loss of $16 million to $32 million, versus a $178 million profit last year. Analysts had expected about $3.41 billion in sales (per). In Europe, sales fell 9.8% on a like-for-like basis, hurt by a new computer system in Germany and fewer sales in the UK and Benelux. Europe chief Andy Hamilton also left.
Why it matters
LKQ sells replacement car parts to repair shops and drivers in North America and Europe, and its shares are now down about 40% this year. By pulling its forecast (guidance), the company has given investors no official estimate of what profits will look like. Moves this big are rare for the stock, which had only seven daily swings above 5% in the past year. A new CEO does not start until December 15, so the turnaround plan is still unclear.
Who this affects
- MarketbearishMedium impact
- LKQ shareholders face a sharp loss and no company outlook.
- CompanybearishHigh impact
- Sales, profit and top leadership all took a hit.
- CompetitorsneutralLow impact
- No clear read-across yet for rivals such as Genuine Parts.
- IndustrybearishLow impact
- Shows a botched software rollout can hurt parts distributors.
LKQ vs Genuine Parts, Advance Auto Parts, O'Reilly Automotive
How we got here
LKQ issues preliminary Q3 results, withdraws 2026 guidance; CEO Justin Jude leaves immediately
Europe president Andy Hamilton exits; Alvarez & Marsal hired to advise on Europe
Shares drop 22.5% to $17.42, a new 52-week low
Salvatore Abbate takes over as president and CEO
What to watch
- Full Q3 results and conference call, with final numbers and any outlook detail2026-10-29
- Whether LKQ restores a 2026 forecast and how Europe margins recoverQ4 2026
- Abbate's first day as CEO and any turnaround plan2026-12-15
Educational content only. Not investment advice.
More briefsAll briefs →
S&P 500 Falls 0.5% as Big Tech Earnings, Fed Test AI Rally
The S&P 500 (SPX) closed Friday at 7,623.68 as Alphabet, Microsoft and Amazon report with the Fed meeting.
Brent Oil Jumps to $116.72 on Iran Strike Fears
Brent (BZ=F) gained 6.2% this week, its highest close since April 29, as Tehran threatens Gulf sites.
Yen Rises for the Week to 157 per Dollar on Haven Demand
The yen (USD/JPY) is near 157 as Japan's 10-year bond yield eased to 2.80%; a BOJ hike is seen in December.