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Jun 30, 2022
LKQ Q2 2022 Earnings Report
Reported strong organic growth amidst challenging operating environment.
Key Takeaways
LKQ Corporation reported a decrease in revenue by 2.7% to $3.3 billion, but experienced a 2.5% growth on a constant currency basis. Diluted EPS increased by 47.5% to $1.49, while adjusted diluted EPS decreased by 3.5% to $1.09. The company generated $328 million in operating cash flow and $288 million in free cash flow during the quarter.
Revenue of $3.3 billion; revenue on a constant currency basis of $3.5 billion.
Parts and services organic revenue growth of 3.8% (4.2% on a per day basis).
Diluted EPS of $1.49 (up 47.5%); adjusted diluted EPS of $1.09 (down 3.5%).
Second quarter operating cash flow of $328 million; free cash flow of $288 million.
LKQ
LKQ
LKQ Revenue by Segment
LKQ Revenue by Geographic Location
Revenue by Segment
Parts and services Revenue
CapyFin.comSelf Service Revenue
CapyFin.comRevenue by Geographic Location
Wholesale North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
LKQ Corporation updated its full year 2022 guidance, maintaining the midpoint of adjusted diluted EPS range and free cash flow guidance, despite headwinds from foreign currency exchange rates and commodity price fluctuations.
Positive Outlook
- Organic revenue growth for parts and services: 4.5% to 6.5%
- Diluted EPS: $4.09 to $4.29
- Adjusted diluted EPS: $3.85 to $4.05
- Operating cash flow: $1.3 billion
- Free cash flow (at a minimum): $1.0 billion
Challenges Ahead
- Assumes current U.S. federal tax legislation remains unchanged.
- Assumes the prices of scrap and precious metals hold near the June average.
- Assumes no further deterioration due to the Ukraine/Russia conflict.
- Exchange rates near July spot levels, including $1.02 and $1.20 for the euro and pound sterling, respectively, for the balance of the year.
- Based on management’s current expectations regarding the recovery from the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income