Automobile-parts recycler LKQ Corp. posted third-quarter results that beat market estimates, partly helped by a rise in its parts and services revenue, and raised its full-year 2010 adjusted earnings outlook.
LKQ, with a market value of about $3.14 billion, buys wrecked cars at auctions and salvages reusable parts like engines and doors, and distributes them to mechanical repair shops or directly to customers.
Its sales have been helped as customers continue to hold on to their old cars post-recession, leading to more demand for service and maintenance work.
LKQ now sees 2010 adjusted earnings of $1.11-$1.15 a share, up from its prior view of $1.08-$1.14 a share. [ID:nSGE66P0GH]
Analysts on average were expecting the company to earn $1.13 a share, before special items, according to Thomson Reuters I/B/E/S.
For the July-September quarter, the company reported net income of $35.9 million, or 25 cents a share, compared with $29.2 million, or 20 cents a share, a year ago.
Revenue rose 23 percent to $607.6 million. Parts and services revenue rose 19 percent to $520.4 million.
Analysts had expected the company to earn 24 cents a share, before special items, on revenue of $569.3 million.
