Shares of LKQ Corporation dropped over 21% after missing analyst expectations and reducing full-year guidance due to macroeconomic challenges and low repairable claims recovery in North America. Quarterly sales were $3.64 billion, falling 1.9% YoY. Organic revenue declined by 3.4%, with a net 2.1% decrease overall.

The company focused on reducing costs, cutting over $125 million in the past year, with a target of $75 million in 2025. Gross profit remained flat at $1.412 billion, with gross margin at 38.8%. Adjusted EBITDA decreased to $423 million, with cash equivalents at $289 million and inventories worth $3.394 billion.

LKQ faces challenges in North America with no recovery in repairable claims and ongoing tariff uncertainty. In Europe, economic softness and geopolitical unrest add to the uncertain environment. Fiscal year 2025 adjusted EPS guidance was cut to $3.00-$3.30 from $3.40-$3.70, below the consensus estimate of $3.52.

The company expects organic revenue for parts and services to decline by 3.5% to 1.5%, compared to a previous estimate of up to 2% growth. The stock hit a 52-week low of $32.78 post-earnings report due to missed earnings and reduced full-year outlook, causing investor unease.

Read more at Yahoo Finance: LKQ Shares Crash To 52-Week Low On Slashed Outlook