FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Lkq: Q1 Earnings In-line; 2026 Guidance Unchanged

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

LKQ Corporation (LKQ) posted Q1 adjusted EPS of $0.67 vs. $0.74 (-10% Y/Y), in-line with consensus. The quarter was characterized by stronger-than-expected sales offset by weaker-than-expected margins, as net sales rose 4.3% to $3.47B ($70M above consensus) but gross margin contracted 110 bps to 38.4% (10 bps below consensus). LKQ maintained 2026 adjusted EPS guidance of $2.90-$3.20, vs. the current consensus of $3.02. Management cited early indicators of potential recovery, including easing insurance premium pressures, improving used car values, and broader automotive market stabilization, though they remain cautious about reflecting a meaningful recovery in their outlook. We think the results and guidance are reflective of a difficult environment for distributors and the near-term outlook remains challenging as LKQ navigates persistent demand weakness across its global operations. Notably, 2025 represented LKQ's fourth straight year of EPS decline after the company's adjusted EPS peaked at $3.96 in 2021.

Related Articles

Research

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Chipotle Mexican Grill Inc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target price at $44, 35x our 2026 EPS estimate, a discount to shares' 50x five-year average, reflecting a lower comparable sales growth profile. We raise our 2026 EPS estimate to $1.26 (from $1.25) and lower 2027's to $1.45 (from $1.46). Following encouraging Q1 results, we reiterate our Buy opinion. CMG posted comparable sales growth of 0.5%, including transaction growth of 0.6%, which highlights the company's focus on value perception with U.S. consumers. We are encouraged by comparable sales growth stabilization following declines in 2025, suggesting the company's structural growth profile remains intact. Further evidence of structural growth catalysts includes new store growth (+49 in Q1) and a pipeline of limited-time offerings and incremental add-ons (such as its cilantro lime sauce) gaining traction and boosting revenue without increasing menu prices. Though this strategy will pressure restaurant margins (-250 bps in Q1), we think this is beneficial for long-term growth.

$CMG
Research

Research Alert: CFRA Maintains Sell Rating On Shares Of Mid-america Apartment Communities, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target price by $6 to $119, recognizing weakness in MAA's key rental markets and a forward P/FFO of 14.0x compared to the multifamily residential REIT average at 15.5x. We raise our FFO estimate in 2026 by $0.15 to $8.50 and lower 2027 by $0.10 to $8.70 per share on total rental revenue of $2.2B and $2.3B, respectively. We have a more cautious FFO outlook for 2027 on our view that raising rents on new leases will be challenging, as it has been in 2026. MAA's geographic footprint in mostly Sun Belt markets faces new supply that has put downward pressure on monthly lease rates and sparked the need for incentives on new tenant leases to meet absorption and reduce vacancies. We do not think the U.S. economy and employment trends are likely to be a catalyst for higher monthly rental rates or revenue. Some of MAA's major Sun Belt markets realized cash NOI declines, like Denver (-13% Y/Y) and Austin, TX (-9% Y/Y), with weakness in other local markets. Dividend yield is 4.7%, which we think is secure.

$MAA
Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of Vlto

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We adjust our target price to $100 from $115 following Q1 results, valuing shares at 22x our unchanged 2027 EPS outlook of $4.53, near peers' three-year historical forward P/E average. We lift our 2026 EPS view to $4.20 from $4.15. VLTO delivered a solid Q1 beat, with operating EPS of $1.07 rising 12.6% Y/Y and surpassing consensus of $1.01, while core sales grew roughly 2% Y/Y, led by stronger Water Quality revenues (up 4%) offsetting a 1% decline in Product Quality and Innovation. China remained a mixed bag, with divergent performance across segments. Operating margins expanded modestly, rising 10 bps to 25.1%, reflecting bottom-line improvements despite mixed sales performance. FCF was up 19.7%, supporting approximately $1B in capital deployment during the quarter, including $620M for the acquisitions of In-Situ and GlobalVision and $300M in share repurchases. VLTO also initiated a cost optimization program expected to generate annual savings of $65M to $75M by 2028.

$VLTO