Despite reports of increased revenue, LKQ Corporation’s stock prices declined by more than 12% on Thursday, before closing the day at $24.78 per share. The drop in prices was precipitated by lower than expected earnings for the fourth quarter. LKQ posted $0.26 in earnings per diluted share compared with the $0.32 per share consensus estimate.
According to the company’s own press release, fourth quarter net income was $80.5 million, an increase of 3.3% compared to the fourth quarter of 2013, and diluted earnings per share was $0.26, flat year over year. For the full year 2014, net income increased $381.5 million, on revenue of $6.74 billion, and diluted earnings per share was $1.25, a 22.5% increase over the $1.02 reported for 2013.
Also on Thursday, LKQ announced that John S. Quinn, Executive Vice President and Chief Financial Officer, is moving to the position of LKQ’s Chief Executive Officer and Managing Director of European Operations. Dominick “Nick” Zarcone has been appointed as LKQ’s Executive Vice President and Chief Financial Officer to succeed Mr. Quinn, effective at the end of March 2015.
Zarcone has been with the investment bank of Robert W. Baird since 1995, most recently as its Managing Director and Chief Financial Officer. Prior to being named CFO of Baird in 2011, Zarcone spent 16 years in Baird’s Investment Banking Department where most recently he was Chief Operating Officer. Zarcone was the senior member of the Baird banking team that lead-managed LKQ’s initial public offering in 2003.