MSCI and LKQ Are the S&P 500's Leading Decliners Tuesday. Here's Why. -- Barrons.com

By Angela Palumbo

MSCI, an investment support tool company, and LKQ, a distributor of vehicle products, were the two top declining stocks in the S&P 500 Tuesday following disappointing financial reports.

MSCI reported first-quarter adjusted earnings of $3.52 a share on Tuesday, which was above the estimates of analysts surveyed by FactSet of $3.47 a share. However, revenue for the quarter of $680 million was below estimates of $685.5 million.

" MSCI's first-quarter financial results affirm that we can deliver solid earnings amid continued operating environment challenges," Chief Executive Henry Fernandez said in the earnings release.

Shares of MSCI tumbled 14% to $444.29 on Tuesday. That puts the stock on pace for its largest one-day percentage decrease since Oct. 2, 2012 and lowest close since Oct. 24, 2022, according to Dow Jones Market Data.

LKQ, however, was the worst performing stock in the S&P 500 Tuesday while MSCI was the second worst decliner in the index. The S&P 500 was rising 1.1%.

Shares of LKQ plummeted 15% to $41.77, putting them on track for their biggest one-day percentage drop in more than two years.

LKQ management said the company was lowering the range of its revenue growth outlook for 2024 "in recognition of the softer than expected first quarter demand." LKQ now expects revenue for the year to grow between 2.5% to 4.5%, compared with the prior estimate of 3.5% to 5.5% growth.

LKQ also reported first-quarter adjusted earnings of 82 cents a share on revenue of $3.7 billion. Analysts surveyed by FactSet were expecting adjusted earnings of 95 cents a share on revenue of $3.76 billion.

"We experienced soft overall market conditions largely due to incredibly mild winter weather in North America, which reduced demand for collision parts and the continued soft demand for our Specialty products," Chief Executive Dominick Zarcone said on the company conference call.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 23, 2024 12:44 ET (16:44 GMT)

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