LKQ Corporation (NASDAQ:LKQ) distributes vehicle replacement parts used in the repair and maintenance of vehicles and recreational vehicle appliances in North America, Europe, and Taiwan. The company also operates self-service retail operations under the LKQ Pick Your Part name.
The last year has been a bumpy ride for LKQ shareholders, down 3% and underperforming the GICS Distributors subindustry by 6%. The subindustry includes Genuine Parts Company (NYSE:GPC), another auto parts distributor, and distributors in different market segments, such as Pool Corporation (NASDAQ:POOL) and Core-Mark Holding Company, Inc. (NASDAQ:CORE).
The weak stock performance of late is a result of revenue misses on the last two quarters, which could be a result of the recent M&A activities and divestment of the OEM glass business.
Both revenues and profits have been steadily increasing for several quarters as the company expands its European presence, primarily through acquisition.