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LKQ Q4 Earnings and Revenues Miss Estimates, Improve Y/Y
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LKQ Corporation’s (LKQ - Free Report) fourth-quarter 2018 adjusted earnings from continuing operations were 48 cents per share, missing the Zacks Consensus Estimate of 49 cents. The bottom line improved from the prior-year quarter’s 41 cents. Adjusted net income from continuing operations was $151.3 million compared with $126.4 million in the year-ago quarter.
In the fourth quarter, total revenues rose 21.6% to $3 billion from $2.47 billion a year ago. Its lightly missed the Zacks Consensus Estimate of $3.01 billion. The company witnessed 4.4% organic revenue growth in parts and services.
2018 Results
In 2018, LKQ’s earnings were $2.19, upfrom $1.88 in 2017.
In the same year, LKQ’s revenues were $11.9 billion, up 22% from the 2017 figure.
Business Developments
On Nov 26, 2018, LKQ reset its credit facility to $3.5 billion.
In fourth-quarter 2018, LKQ acquired three wholesale businesses in North America and two wholesale businesses in Europe for around 14 million. LKQ’s European operations opened five branches in eastern Europe.
Financial Position
LKQ had cash and cash equivalents of $337.3 million as of Dec 31, 2018, compared with $279.8 million as of Dec 31, 2017.
For the year ended Dec 31, 2018, LKQ had net cash provided by operating activities of around $710.7 million.
2019 Outlook
For 2019, LKQ expects organic revenue growth of 2-4%for parts & services.
Further, adjusted net income from continuing operations is expected to be $732-$771 million. Adjusted earnings per share from continuing operations in 2019 are expected to be $2.34-$2.46.
General Motors has an expected long-term growth rate of 8.5%. Shares of the company have gained 4% in the past month.
Valeo has an expected long-term growth rate of 0.5%. Share price of the company has increased 5.6% in the past month.
Ferrari has an expected long-term growth rate of 18.5%. Over the past month, shares of the company have gained 16.4%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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LKQ Q4 Earnings and Revenues Miss Estimates, Improve Y/Y
LKQ Corporation’s (LKQ - Free Report) fourth-quarter 2018 adjusted earnings from continuing operations were 48 cents per share, missing the Zacks Consensus Estimate of 49 cents. The bottom line improved from the prior-year quarter’s 41 cents. Adjusted net income from continuing operations was $151.3 million compared with $126.4 million in the year-ago quarter.
In the fourth quarter, total revenues rose 21.6% to $3 billion from $2.47 billion a year ago. Its lightly missed the Zacks Consensus Estimate of $3.01 billion. The company witnessed 4.4% organic revenue growth in parts and services.
2018 Results
In 2018, LKQ’s earnings were $2.19, upfrom $1.88 in 2017.
In the same year, LKQ’s revenues were $11.9 billion, up 22% from the 2017 figure.
Business Developments
On Nov 26, 2018, LKQ reset its credit facility to $3.5 billion.
In fourth-quarter 2018, LKQ acquired three wholesale businesses in North America and two wholesale businesses in Europe for around 14 million. LKQ’s European operations opened five branches in eastern Europe.
Financial Position
LKQ had cash and cash equivalents of $337.3 million as of Dec 31, 2018, compared with $279.8 million as of Dec 31, 2017.
For the year ended Dec 31, 2018, LKQ had net cash provided by operating activities of around $710.7 million.
2019 Outlook
For 2019, LKQ expects organic revenue growth of 2-4%for parts & services.
Further, adjusted net income from continuing operations is expected to be $732-$771 million. Adjusted earnings per share from continuing operations in 2019 are expected to be $2.34-$2.46.
Zacks Rank & Stocks to Consider
LKQ currently has a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader auto sector are General Motors Company (GM - Free Report) , Valeo S.A. (VLEEY - Free Report) and Ferrari N.V. (RACE - Free Report) . General Motors and Valeo currently carry a Zacks Rank #2 (Buy) while Ferrari sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors has an expected long-term growth rate of 8.5%. Shares of the company have gained 4% in the past month.
Valeo has an expected long-term growth rate of 0.5%. Share price of the company has increased 5.6% in the past month.
Ferrari has an expected long-term growth rate of 18.5%. Over the past month, shares of the company have gained 16.4%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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