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Jun 30, 2024
LKQ Q2 2024 Earnings Report
LKQ's second quarter performance was impacted by lower repairable claims in North America and difficult macroeconomic conditions in Europe, leading to declines in overall volumes.
Key Takeaways
LKQ Corporation reported second quarter 2024 financial results with revenue of $3.7 billion, an 8% increase compared to the same period in 2023. Diluted EPS was $0.70, and adjusted diluted EPS was $0.98. The company generated $213 million in operating cash flow and $133 million in free cash flow. Due to revenue headwinds, the company updated its annual guidance.
Revenue for the second quarter of 2024 was $3.7 billion, an increase of 7.6% compared to $3.4 billion for the second quarter of 2023.
Diluted earnings per share for the second quarter of 2024 was $0.70 compared to $1.05 for the same period of 2023, a decrease of 33.3%.
Adjusted diluted earnings per share was $0.98 for the second quarter of 2024 compared to $1.09 for the same period of 2023, a decrease of 10.1%.
Cash flow from operations and free cash flow were $213 million and $133 million, respectively, for the second quarter of 2024.
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
Based on a projected continuation of the revenue headwinds, the company is lowering its full year guidance. While actions have been taken to reduce costs and protect margins and cash flows, the benefits are not expected to offset the full impact of the lower revenue expectation.
Positive Outlook
- Confident in LKQ’s ability to deliver on these expectations given market-leading businesses.
- Successful operational excellence strategy
- Strength of the team
- Global effective tax rate of 26.8%
- Prices of scrap and precious metals hold near the June average
Challenges Ahead
- Projected continuation of the revenue headwinds experienced in the first half of 2024
- Actions to reduce costs and protect margins and cash flows are not expected to offset the full impact of the lower revenue expectation
- Assumes no further deterioration due to the Ukraine/Russia conflict.
- Foreign currency exchange rates near second quarter average levels, including $1.09, $1.27 and $0.73 for the euro, pound sterling and Canadian dollar, respectively, for the balance of the year.
- Changes in these conditions may impact ability to achieve the estimates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income