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Jun 30, 2023
LKQ Q2 2023 Earnings Report
Reported strong operational performance despite headwinds, with Wholesale - North America and Europe segments driving revenue growth and margins. The Uni-Select Inc. acquisition is on track.
Key Takeaways
LKQ Corporation reported a 3.2% increase in revenue to $3.4 billion for Q2 2023. Diluted EPS was $1.05, while adjusted diluted EPS was $1.09. The company generated $480 million in operating cash flow and $414 million in free cash flow.
Revenue increased by 3.2% to $3.4 billion.
Parts and services organic revenue increased by 4.8% (5.4% on a per day basis).
Diluted EPS was $1.05; adjusted diluted EPS was $1.09.
Operating cash flow was $480 million and free cash flow was $414 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
LKQ updated its full year 2023 outlook, with organic revenue growth for parts and services expected to be 6.0% to 7.5%, diluted EPS between $3.65 and $3.85, adjusted diluted EPS between $3.90 and $4.10, operating cash flow approximately $1.275 billion, and free cash flow approximately $975 million.
Positive Outlook
- Organic revenue growth for parts and services is expected to be 6.0% to 7.5%.
- Adjusted diluted EPS is projected to be between $3.90 and $4.10.
- Operating cash flow is anticipated to be approximately $1.275 billion.
- Free cash flow is expected to be approximately $975 million.
- Free cash flow conversion of Adjusted EBITDA is projected to be 55% to 60%.
Challenges Ahead
- Continued effects from falling commodity prices.
- Higher interest expense.
- Diluted EPS is projected to be between $3.65 and $3.85, lower than the previous outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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