ORLANDO, Fla., June 17, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has issued a first quarter 2008 research update for LKQ Corp. (Nasdaq:LKQX).
Ekta Bhatia, MBS, RedChip Research Analyst, reported:
"LKQX reported another solid quarter with remarkable results and impressive margin expansion. Exceeding our estimate of $0.19 per share diluted earnings, the Company reported 1Q08 diluted EPS of $0.22. During the quarter, the Company moved to effectively integrate Keystone Automotive Industries, Inc. and realized further strategic alliances."
"While LKQX is efficiently integrating its aftermarket parts business with Keystone, its recent foray into the heavy-duty truck market is quite opportunistic. The Company acquired Texas Best Diesel, a heavy truck recycling business in Houston, Texas. This is a new segment for LKQX, and it indicates to assume the same roll-up strategy that the Company used for the light vehicle market. Insurance industries are also looking forward to the cost-saving advantages in the heavy-duty truck industry, which can substantially contribute to the operational results of LKQX. This promising market is very fragmented, and the Company expects attractive margins," Bhatia continued.
"We believe attractive acquisitions and an increasing network of alternative parts will prove accretive to the earnings growth of the Company while adding value to shareholders' portfolios. Given the Company's dominant position in the industry and its acquisition-led business growth amidst a favorable market trend, we believe there is further scope for multiple expansions from LKQX's current levels. We continue to maintain our 'Buy' rating," she concluded.
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Disclosure
Neither the analyst(s) nor RedChip Companies, Inc., has received any compensation from OptionsXpress Holdings, Inc., or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. As such, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities ("related investments"). This publication was furnished on the condition that it will not form a primary basis for any investment decision. Any opinions expressed herein are subject to change. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.