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Mar 31, 2021
LKQ Q1 2021 Earnings Report
LKQ's first quarter results reflected strength in profitability, segment margins, and free cash flow, exceeding expectations due to operational excellence and key initiatives.
Key Takeaways
LKQ Corporation reported a strong first quarter in 2021, with revenue up 5.7% year-over-year to $3.2 billion. Diluted EPS increased by 83.3% to $0.88, and adjusted diluted EPS rose by 64.9% to $0.94. The company saw significant improvements in segment EBITDA margins and free cash flow, leading to an increased 2021 outlook.
First quarter revenue increased by 5.7% year-over-year to $3.2 billion.
Diluted EPS increased by 83.3% to $0.88, and adjusted diluted EPS increased by 64.9% to $0.94.
North America Segment EBITDA margin reached 19.9%, the highest in the company's history.
Free cash flow increased by 220% year-over-year to $481 million.
LKQ
LKQ
LKQ Revenue by Segment
LKQ Revenue by Geographic Location
Revenue by Segment
Parts and services Revenue
CapyFin.comRevenue by Geographic Location
Wholesale North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
LKQ raised its 2021 outlook on profitability and free cash flow, anticipating full year parts and services revenue growth, diluted EPS between $2.68 and $2.88, adjusted diluted EPS between $3.00 and $3.20, and free cash flow between $850 million and $950 million.
Positive Outlook
- Q2 growth on a light comparable period, followed by gradual recovery in the second half of the year.
- Diluted EPS attributable to LKQ stockholders in the range of $2.68 to $2.88.
- Adjusted diluted EPS attributable to LKQ stockholders in the range of $3.00 to $3.20.
- Free cash flow in the range of $850 million to $950 million.
- Based on strong start to the year.
Challenges Ahead
- Two fewer selling days in North America, one each in Q1 and Q4.
- Assumes current U.S. federal tax legislation remains unchanged.
- Exchange rates for the Canadian dollar, euro, and pound sterling hold near recent levels.
- The price of scrap and precious metals trend lower in the second half of the year.
- Based on management’s current expectations regarding the recovery from the coronavirus outbreak.