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Sep 30, 2024
LKQ Q3 2024 Earnings Report
LKQ's Q3 2024 performance reflected softer overall volumes, with strategic transformation efforts underway and adjusted diluted earnings per share showing growth.
Key Takeaways
LKQ Corporation reported a revenue increase of 0.5% to $3.6 billion in Q3 2024. Diluted EPS was $0.73, while adjusted diluted EPS reached $0.88. The company generated $420 million in operating cash flow and $341 million in free cash flow. LKQ repurchased $125 million of its shares and increased the stock repurchase program by $1 billion.
Revenue increased by 0.5% to $3.6 billion compared to Q3 2023.
Diluted EPS was $0.73, and adjusted diluted EPS was $0.88.
Operating cash flow was $420 million, with free cash flow reaching $341 million.
The company repurchased $125 million in LKQ shares and increased the stock repurchase program by $1 billion.
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 updated its full-year 2024 outlook due to revenue headwinds, projecting a decline in organic revenue growth for parts and services, with adjusted diluted EPS expected to be in the range of $3.38 to $3.52. Despite the decrease in profitability, the company maintains its prior cash flow guidance by managing working capital and capital expenditures.
Positive Outlook
- Cost actions and synergy realization have boosted profitability.
- Prior cash flow guidance is being held despite the decrease in profitability.
- Working capital and capital expenditure management will help mitigate the impact of lower revenue.
- Global effective tax rate is assumed at 27.0%.
- Foreign currency exchange rates are applied near third quarter average levels.
Challenges Ahead
- Revenue headwinds experienced across global operations have been more impactful than projected.
- These headwinds are not expected to abate in the fourth quarter.
- Benefits from cost actions are not expected to offset the full impact of the lower revenue expectation.
- Organic revenue growth (decline) for parts and services is updated to (-2.75%) to (-1.75%).
- Diluted EPS is updated to $2.59 to $2.73.
Revenue & Expenses
Visualization of income flow from segment revenue to net income