LKQ Earnings: Repair Demand Continues To Remain Solid, Driving Solid Sales Growth Globally

We elected to leave our fair value estimate of $46.50 for LKQ unchanged, following second-quarter earnings. We expect near-term demand to remain solid for the balance of the year. In North America, LKQ increased sales by nearly 5% year on year, thanks to stronger pricing (offset cost inflation). The company maintains that supply chains continue to improve, driving gains in aftermarket collision parts volume. Sales in Europe were up nearly 11% year on year, thanks to solid pricing. The growth in vehicle miles driven in Europe isn’t as high as it is in North America, but it’s still growing, supporting parts and services demand.