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LKQ Corporation (LKQ - Free Report) reported adjusted earnings of 57 cents per share in first-quarter 2020, surpassing the Zacks Consensus Estimate of 51 cents. The bottom line also increased 1.8% year over year. Higher year-over-year revenues and EBITDA from the North American segment led to this outperformance.
Quarterly revenues came in at 3,000.9 million, topping the Zacks Consensus Estimate of $2,984 million. However, the top line decreased from the year-ago level of $3,100.3 million. Parts and services organic growth also fell 3.5% year over year.
Revenues from the North American unit totaled $1,290.2 million, down from $1,302.3 million recorded in the prior-year quarter. EBITDA from the segment came in at $211.4 million, up 19.7% year over year.
Revenues from the European segment totaled $1,363.6 million, down from $1,445.5 million recorded in the prior-year quarter. EBITDA from the segment came in at $78.3 million, down 25.6% year over year.
Revenues and EBITDA from the Specialty segment came in at $348.6 million and $32.2 million, down from the year-ago respective figures of $353.7 million and $37.9 million.
Financial Position
LKQ Corp. had cash and cash equivalents of $332.8 million as of Mar 31, 2020. Long-term debt amounted to $3,672.2 million. At the end of first-quarter 2020, the company generated net cash of $194.5 million from operations, higher than the $177.2 million in the comparable year-ago period. It generated negative free cash flow of $150 million in the quarter compared with the year-earlier figure of $124.2 million.
During first-quarter 2020, LKQ Corp. bought back 3.3 million shares of common stock for a total consideration of $88 million. However, amid coronavirus-led uncertainty and financial crisis, the company has suspended share buybacks as well as withdrawn its view for 2020.
Zacks Rank & Key Picks
LKQ Corp. currently carries a Zacks Rank #4 (Sell).
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LKQ Corp. (LKQ) Q1 Earnings Top, Up Y/Y Amid Coronavirus Woes
LKQ Corporation (LKQ - Free Report) reported adjusted earnings of 57 cents per share in first-quarter 2020, surpassing the Zacks Consensus Estimate of 51 cents. The bottom line also increased 1.8% year over year. Higher year-over-year revenues and EBITDA from the North American segment led to this outperformance.
Quarterly revenues came in at 3,000.9 million, topping the Zacks Consensus Estimate of $2,984 million. However, the top line decreased from the year-ago level of $3,100.3 million. Parts and services organic growth also fell 3.5% year over 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 $1,290.2 million, down from $1,302.3 million recorded in the prior-year quarter. EBITDA from the segment came in at $211.4 million, up 19.7% year over year.
Revenues from the European segment totaled $1,363.6 million, down from $1,445.5 million recorded in the prior-year quarter. EBITDA from the segment came in at $78.3 million, down 25.6% year over year.
Revenues and EBITDA from the Specialty segment came in at $348.6 million and $32.2 million, down from the year-ago respective figures of $353.7 million and $37.9 million.
Financial Position
LKQ Corp. had cash and cash equivalents of $332.8 million as of Mar 31, 2020. Long-term debt amounted to $3,672.2 million. At the end of first-quarter 2020, the company generated net cash of $194.5 million from operations, higher than the $177.2 million in the comparable year-ago period. It generated negative free cash flow of $150 million in the quarter compared with the year-earlier figure of $124.2 million.
During first-quarter 2020, LKQ Corp. bought back 3.3 million shares of common stock for a total consideration of $88 million. However, amid coronavirus-led uncertainty and financial crisis, the company has suspended share buybacks as well as withdrawn its view for 2020.
Zacks Rank & Key Picks
LKQ Corp. currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector include Veoneer, Inc. , Spartan Motors, Inc. and Modine Manufacturing Company (MOD - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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