LKQ Corp. shares slide; downgraded to market perform at Raymond James

BOSTON, Jun 19, 2008 (Thomson Financial via COMTEX) -- LKQX | Quote | Chart | News | PowerRating -- Shares of LKQ Corp. tumbled for a fourth consecutive session Thursday after the Chicago-based auto parts wholesaler was downgraded to market perform from outperform at Raymond James.

The stock plunged 8.9% to $17.02 on volume of 3 million shares, nearly doubling its 30-day average volume of 1.6 million shares. Prior to the opening bell, the issue had fallen roughly 11% year-to-date.

Raymond James said wholesale used vehicle prices are falling sharply at an accelerated pace and total vehicle miles driven fell 4% year-over-year in March.

"Intuitively, along with fewer miles driven, drivers may opt to drive slower so as to improve gas mileage, negatively impacting accident rates," Raymond James said in a note to clients.

As a result, the broker trimmed its 2008 comparable-store sales growth assumption to 6.5% from 9.3% and lowered its 2008 earnings-per-share estimate to 79 cents from 83 cents.

Analysts polled by Thomson Reuters, on average, estimate full-year earnings of 78 cents a share. Greg Saulnier gs/vj

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