My quick take:

The initial reaction (judging by the stock price) to the earnings seems negative, but the major stock indexes are all down pretty big.  From my standpoint, while I was a little disappointed to see the company’s expense leverage erode (SG&A as a percent of revenues,) overall I thought the results were pretty good.  LKQ reported net income of $10.2 million, or $0.18 per share, right in-line with my forecast.  And same-store facility (top line) growth was north of 11%.

I think the most important thing to take note of from the release was LKQ’s 4Q06 acquisition announcements.  Remember it is the long term growth prospects we are concerned with ...

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Related Companies: LKQ Corp.