LKQ Earnings: We Maintain Our $46.50 Fair Value Estimate, Following First-Quarter Earnings

We saw no major surprises in LKQ's first-quarter earnings, leading us to maintain our $46.50 fair value estimate. Top line was flat in the quarter, as organic revenue growth was offset by the PGW Auto Glass divesture and currency headwinds. On an organic basis, LKQ's North America business showed the strongest gains, increasing 14.4% in the quarter compared with the same period a year earlier. The company was able to raise pricing (more than offsetting cost inflation) and grow volumes in the region. Management highlighted improving supply chains helped drive aftermarket collision parts volumes.