Back to top

Image: Bigstock

LKQ Corp. (LKQ) Q1 Earnings Top, Up Y/Y Amid Coronavirus Woes

Read MoreHide Full Article

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 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 However, amid coronavirus-led uncertainty and financial crisis, the company has suspended share buybacks as well as withdrawn its view for 2020.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. (VNE - Free Report) , 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

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

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.

See their latest picks free >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Modine Manufacturing Company (MOD) - free report >>

LKQ Corporation (LKQ) - free report >>

Veoneer, Inc. (VNE) - free report >>