Feb 20 (Reuters) - Auto parts distributor LKQ Corp LKQ.O on Thursday forecast lower-than-expected annual profit, after missing fourth-quarter revenue estimates due to sluggish demand for vehicle parts.
Consumers have been hesitant about opting in for insurance for vehicular damages due to rising premiums and the high cost of repairs, hurting demand for spare parts.
LKQ has been ramping up its cost-cutting measures by selling underperforming assets, including its operations in Poland and Bosnia, and implementing job cuts.
The company forecast 2025 adjusted earnings in the range of $3.40 to $3.70 per share, below analysts' average estimate of $3.60, according to data compiled by LSEG.
It expects its annual organic revenue growth for parts and services to be between 0% and 2%.
LKQ, which also sells scrap and other materials to metal recyclers, posted sales of $3.36 billion for the quarter ended December 31, missing estimates of $3.40 billion.
The company reported fourth-quarter adjusted earnings of 80 cents per share, compared with estimates of 74 cents.
(Reporting by Raechel Thankam Job and Aishwarya Jain in Bengaluru; Editing by Shreya Biswas)
((RaechelThankam.Job@thomsonreuters.com;))
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