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LKQ Corp (LKQ) Q4 Earnings Beat, Revenues Miss Estimates
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LKQ Corporation (LKQ - Free Report) reported adjusted earnings of 54 cents per share in the fourth quarter of 2019, surpassing the Zacks Consensus Estimate of 52 cents. The bottom line also increased 13% year over year. Higher year-over-year revenues from the North American segment led to this outperformance.
Quarterly revenues came in at 3,009 million, missing the Zacks Consensus Estimate of $3,015 million. However, the top line increased from the year-ago level of $3,002 million. The company witnessed 0.9% organic revenue growth in parts and services. Revenue growth from acquisitions was 0.2% year on year.
Revenues from the North American unit totaled $1,283 million, up 2.3% year over year. EBITDA from the segment came in at $179.96 million, up from the year-ago figure of $153.38 million.
Revenues from the European segment totaled $1,425 million, down 0.14% year over year. EBITDA from the segment came in at $107.93 million, up 0.93% year over year.
Revenues and EBITDA from the Specialty segment came in at $303.35 million and $25.39 million, down from the year-ago figure of $322.95 million and $27.55 million, respectively.
Financial Position
LKQ Corp had cash and cash equivalents of $523.02 million as of Dec 31, 2019. Long-term debt amounted to $3,715 million. Its debt-to-capital ratio stands at 44.46%. At the end of fourth-quarter 2019, the company generated net cash of $98.86 million from operations, lower than the $189.57 million witnessed in the comparable year-ago period. The company generated negative free cash flow of $1.31 million in the quarter compared with the year-earlier quarter’s $111.3 million.
2020 Outlook
For 2020, LKQ Corp forecasts adjusted diluted EPS of $2.46-$2.58. Organic revenue growth for parts & services is projected at 0.5-2.5% and adjusted net income is estimated to be $757-$793 million. Capex is anticipated to lie in the range of $250 million to $300 million, and cash flow from operations is forecast in the band of $1-$1.5 billion.
BRP has a projected earnings growth rate of 20.17% for 2020. Its shares have surged 95.7% over the past year.
Fox Factory has an estimated earnings growth rate of 9.67% for the ongoing year. The company’s shares have appreciated 16.1% in a year’s time.
SPX has an expected earnings growth rate of 6.52% for the current year. The stock has rallied 35.1% in the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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LKQ Corp (LKQ) Q4 Earnings Beat, Revenues Miss Estimates
LKQ Corporation (LKQ - Free Report) reported adjusted earnings of 54 cents per share in the fourth quarter of 2019, surpassing the Zacks Consensus Estimate of 52 cents. The bottom line also increased 13% year over year. Higher year-over-year revenues from the North American segment led to this outperformance.
Quarterly revenues came in at 3,009 million, missing the Zacks Consensus Estimate of $3,015 million. However, the top line increased from the year-ago level of $3,002 million. The company witnessed 0.9% organic revenue growth in parts and services. Revenue growth from acquisitions was 0.2% year on year.
LKQ Corporation Price, Consensus and EPS Surprise
LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation Quote
Segment Highlights
Revenues from the North American unit totaled $1,283 million, up 2.3% year over year. EBITDA from the segment came in at $179.96 million, up from the year-ago figure of $153.38 million.
Revenues from the European segment totaled $1,425 million, down 0.14% year over year. EBITDA from the segment came in at $107.93 million, up 0.93% year over year.
Revenues and EBITDA from the Specialty segment came in at $303.35 million and $25.39 million, down from the year-ago figure of $322.95 million and $27.55 million, respectively.
Financial Position
LKQ Corp had cash and cash equivalents of $523.02 million as of Dec 31, 2019. Long-term debt amounted to $3,715 million. Its debt-to-capital ratio stands at 44.46%. At the end of fourth-quarter 2019, the company generated net cash of $98.86 million from operations, lower than the $189.57 million witnessed in the comparable year-ago period. The company generated negative free cash flow of $1.31 million in the quarter compared with the year-earlier quarter’s $111.3 million.
2020 Outlook
For 2020, LKQ Corp forecasts adjusted diluted EPS of $2.46-$2.58. Organic revenue growth for parts & services is projected at 0.5-2.5% and adjusted net income is estimated to be $757-$793 million. Capex is anticipated to lie in the range of $250 million to $300 million, and cash flow from operations is forecast in the band of $1-$1.5 billion.
Zacks Rank & Stocks to Consider
LKQ Corp currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the Auto-Tires-Trucks sector include BRP Inc. (DOOO - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
BRP has a projected earnings growth rate of 20.17% for 2020. Its shares have surged 95.7% over the past year.
Fox Factory has an estimated earnings growth rate of 9.67% for the ongoing year. The company’s shares have appreciated 16.1% in a year’s time.
SPX has an expected earnings growth rate of 6.52% for the current year. The stock has rallied 35.1% in the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>