We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LKQ Q1 Earnings Miss Estimates, Decline Y/Y, Guidance Revised
Read MoreHide Full Article
LKQ Corporation (LKQ - Free Report) delivered adjusted earnings of 82 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 94 cents and decreased from $1.04 reported in the year-ago period.
The aftermarket auto parts distributor registered quarterly revenues of $3.7 billion, missing the Zacks Consensus Estimate of $3.79 billion. The top line, however, grew from the year-ago level of $3.35 billion. Parts and services organic revenues decreased 0.3% year over year.
In the reported quarter, revenues from the Wholesale North American segment totaled $1.5 billion, rising 22% year over year but missing our estimate of $1.54 billion. The segment’s EBITDA was $244 million, which was slightly above our forecast of $243.7 million but lower than $252 million generated in the first quarter of 2023.
Revenues from the European segment were $1.64 billion, which increased 5.7% year over year but missed our estimate of $1.71 billion. The segment’s EBITDA came in at $143 million, which decreased from the year-ago level of $151 million and missed our forecast of $152.4 million.
Revenues from the Specialty segment came in at $423 million, rising 6.5% year over year and beating our projection of $401.4 million. The segment’s EBITDA was $27 million, which declined from the year-ago figure of $31 million and missed our forecast of $33.1 million.
Revenues from the Self-Service segment totaled $137 million, down 18.9% year over year. The metric also missed our prediction of $141.6 million. The segment’s EBITDA was $16 million, which outpaced our estimate of $8.5 million but declined from $22 million reported in the year-ago period.
Financial Position & Dividend
LKQ had cash and cash equivalents of $344 million as of Mar 31, 2024, up from $299 million recorded as of Dec 31, 2023. The long-term obligations (excluding the current portion) amounted to $4.16 billion as of Mar 31, 2024, up from $3.65 billion recorded as of Dec 31, 2023. As of Mar 31, 2024, LKQ’s balance sheet reflected a total debt of $4.3 billion.
During the first quarter of 2024, cash flow provided by operating activities totaled $253 million. The company recorded a positive free cash flow of $187 million.
During the first quarter of 2024, the company repurchased 0.6 million shares worth $30 million. In the period between initiating the stock buyback program in late October 2018 and Mar 31, 2024, it repurchased around 57 million shares for a total of $2.5 billion.
On Apr 22, 2024, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on May 30, 2024, to stockholders of record at the close of business on May 16, 2024.
Revised 2024 Guidance
For full-year 2024, the company now expects organic revenue growth for parts and services to increase 2.5-4.5% year over year, down from the previous guided range of 3.5-5.5%. It now expects diluted earnings per share (EPS) in the range of $3.32-$3.62, down from the previous guidance of $3.43-$3.73. The company’s estimates for adjusted diluted EPS, operating cash flow and free cash flow have remained unchanged at $3.90-$4.20, $1.35 billion and $1 billion, respectively.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.81% and 4.73%, respectively. The EPS estimates for 2025 have improved 32 cents in the past 30 days.
The Zacks Consensus Estimate for VWAGY’s 2024 sales suggests year-over-year growth of 20.16%. The EPS estimates for 2024 and 2025 have improved 7 cents and 29 cents, respectively, in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
LKQ Q1 Earnings Miss Estimates, Decline Y/Y, Guidance Revised
LKQ Corporation (LKQ - Free Report) delivered adjusted earnings of 82 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 94 cents and decreased from $1.04 reported in the year-ago period.
The aftermarket auto parts distributor registered quarterly revenues of $3.7 billion, missing the Zacks Consensus Estimate of $3.79 billion. The top line, however, grew from the year-ago level of $3.35 billion. Parts and services organic revenues decreased 0.3% year over year.
LKQ Corporation Price, Consensus and EPS Surprise
LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation Quote
Segment Highlights
In the reported quarter, revenues from the Wholesale North American segment totaled $1.5 billion, rising 22% year over year but missing our estimate of $1.54 billion. The segment’s EBITDA was $244 million, which was slightly above our forecast of $243.7 million but lower than $252 million generated in the first quarter of 2023.
Revenues from the European segment were $1.64 billion, which increased 5.7% year over year but missed our estimate of $1.71 billion. The segment’s EBITDA came in at $143 million, which decreased from the year-ago level of $151 million and missed our forecast of $152.4 million.
Revenues from the Specialty segment came in at $423 million, rising 6.5% year over year and beating our projection of $401.4 million. The segment’s EBITDA was $27 million, which declined from the year-ago figure of $31 million and missed our forecast of $33.1 million.
Revenues from the Self-Service segment totaled $137 million, down 18.9% year over year. The metric also missed our prediction of $141.6 million. The segment’s EBITDA was $16 million, which outpaced our estimate of $8.5 million but declined from $22 million reported in the year-ago period.
Financial Position & Dividend
LKQ had cash and cash equivalents of $344 million as of Mar 31, 2024, up from $299 million recorded as of Dec 31, 2023. The long-term obligations (excluding the current portion) amounted to $4.16 billion as of Mar 31, 2024, up from $3.65 billion recorded as of Dec 31, 2023. As of Mar 31, 2024, LKQ’s balance sheet reflected a total debt of $4.3 billion.
During the first quarter of 2024, cash flow provided by operating activities totaled $253 million. The company recorded a positive free cash flow of $187 million.
During the first quarter of 2024, the company repurchased 0.6 million shares worth $30 million. In the period between initiating the stock buyback program in late October 2018 and Mar 31, 2024, it repurchased around 57 million shares for a total of $2.5 billion.
On Apr 22, 2024, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on May 30, 2024, to stockholders of record at the close of business on May 16, 2024.
Revised 2024 Guidance
For full-year 2024, the company now expects organic revenue growth for parts and services to increase 2.5-4.5% year over year, down from the previous guided range of 3.5-5.5%. It now expects diluted earnings per share (EPS) in the range of $3.32-$3.62, down from the previous guidance of $3.43-$3.73. The company’s estimates for adjusted diluted EPS, operating cash flow and free cash flow have remained unchanged at $3.90-$4.20, $1.35 billion and $1 billion, respectively.
Zacks Rank & Key Picks
LKQ currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Volkswagen AG (VWAGY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.81% and 4.73%, respectively. The EPS estimates for 2025 have improved 32 cents in the past 30 days.
The Zacks Consensus Estimate for VWAGY’s 2024 sales suggests year-over-year growth of 20.16%. The EPS estimates for 2024 and 2025 have improved 7 cents and 29 cents, respectively, in the past 30 days.