KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
LKQ Corp. stock plunged 17.8%, making it the worst-performing stock in the S&P 500 on Thursday, after the automotive parts and services provider delivered disappointing earnings and slashed its 2025 outlook.
Key Financial Results:
- Adjusted EPS: 87 cents– Missed estimates of 92 cents– Down 11% year-over-year
- Revenue: $3.64 billion– Slightly beat expectations of $3.62 billion
Parts & Services Comparable Revenue: -3.4% vs. Q2 2024
2025 Outlook Cut:
- New EPS Guidance: $3.00–$3.30– Previously: $3.40–$3.70
- Organic Revenue Forecast for Parts & Services:– Now expected to decline 1.5% to 3.5%– Previously forecasted as flat to +2%
What’s Dragging LKQ Down?
Fewer vehicle repairs due to:
Higher insurance deductibles
Declining used car prices
Increased repair costs
Lower insurance coverage rates
Economic slowdown in Europe
Tariff uncertainty in North America
These factors have reduced the number of insured and repairable vehicles, directly impacting LKQ’s core business.
Market Impact:
Stock fell over 21% intraday, on pace for its biggest single-day percentage drop ever
Closed at its lowest level since October 2020
Conclusion & Key Takeaways:
LKQ’s results and outlook show a weaker-than-expected repair and insurance landscape, especially in key regions.
Higher costs, policy changes, and economic uncertainty are hurting demand for replacement parts and repair services.
Investors were spooked by the sharp guidance cut, triggering a record-breaking stock decline.
Bottom line: LKQ faces a tough road ahead as macro pressures weigh on vehicle repair trends—and Wall Street just hit the brakes hard.
Comments
Post a Comment