LKQ Surpasses Q3 Earnings Expectations, Trims 2024 Outlook

LKQ Corporation LKQ delivered adjusted earnings of 88 cents per share for third-quarter 2024, which beat the Zacks Consensus Estimate of 87 cents and rose from 86 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.58 billion, missing the Zacks Consensus Estimate of $3.63 billion. The top line, however, grew from the year-ago level of $3.56 billion. Parts and services organic revenues decreased 2.8% year over year.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.LKQ Corporation Price, Consensus and EPS Surprise LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation QuoteSegment HighlightsIn the reported quarter, revenues from the Wholesale North American segment totaled $1.42 billion, rising 2.1% year over year but lagging our estimate of $1.48 billion. The segment’s EBITDA was $228 million, which was below our forecast of $248.4 million and $236 million generated in the third quarter of 2023.Revenues from the European segment were $1.61 billion, rising 2% year over year but below our estimate of $1.62 billion. The segment’s EBITDA came in at $165 million, which rose from the year-ago level of $147 million and topped our forecast of $149.6 million.Revenues from the Specialty segment came in at $419 million, which fell 8.3% year over year and missed our projection of $454.2 million. The segment’s EBITDA was $31 million, which inched down from the year-ago figure of $40 million and lagged our forecast of $33.6 million.Revenues from the Self-Service segment totaled $131 million, down 7.1% year over year. The metric, however, topped our prediction of $117.7 million. The segment’s EBITDA was $10 million, which missed our estimate of $11.1 million but increased from negative EBITDA of $1 million reported in the year-ago period.Financial Position & DividendLKQ had cash and cash equivalents of $353 million as of Sept. 30, 2024, down from $299 million recorded as of Dec. 31, 2023. The long-term obligations (excluding the current portion) amounted to $4.29 billion as of Sept. 30, 2024, up from $3.66 billion recorded as of Dec. 31, 2023. As of Sept. 30, 2024, LKQ’s balance sheet reflected a total debt of $4.4 billion.During the third quarter of 2024, cash flow provided by operating activities totaled $420 million. The company recorded a positive free cash flow of $341 million.During the third quarter of 2024, the company repurchased 3 million shares worth $125 million. In the period between initiating the stock buyback program in late October 2018 and Sept. 30, 2024, it repurchased around 62 million shares for a total of $2.7 billion.On Oct. 22, 2024, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on Nov. 27, 2024, to stockholders of record at the close of business on Nov. 14, 2024.LKQ Revises 2024 GuidanceFor 2024, the company now anticipates parts and services organic revenues to be down 2.75-1.75% year over year. This indicates a downward revision from the prior guided range of a rise of 0.25% to a decline of 1.25% year over year. It now expects adjusted EPS in the range of $3.38-$3.52, down from $3.50-$3.70 guided earlier. The company envisions operating cash flow to be $1.175 billion, down from the previous outlook of $1.20 billion. It expects free cash flow to be $850 million.Zacks Rank & Key PicksLKQ currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the auto space are Modine Manufacturing Company MOD, BYD Company Limited BYDDY and Suzuki Motor Corporation SZKMY, 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 MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 19.52%, respectively. EPS estimates for 2024 and 2025 have improved by 8 cents and 14 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LKQ Corporation (LKQ): Free Stock Analysis Report Modine Manufacturing Company (MOD): Free Stock Analysis Report Suzuki Motor (SZKMY): Free Stock Analysis Report Byd Co., Ltd. (BYDDY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks