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Dec 31, 2021
LKQ Q4 2021 Earnings Report
Reported solid results driven by operational excellence and strategic initiatives.
Key Takeaways
LKQ Corporation reported a revenue increase of 7.9% year-over-year, reaching $3.2 billion in Q4 2021. The company's diluted EPS increased by 37.3% to $0.81, and adjusted diluted EPS increased by 26.1% to $0.87.
Fourth quarter revenue increased by 7.9% year-over-year to $3.2 billion.
Parts and services organic revenue increased 6.6% (7.3% on a per day basis).
Diluted EPS increased 37.3% to $0.81, while adjusted diluted EPS increased 26.1% to $0.87.
The company invested $297 million repurchasing its common stock during the fourth quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
LKQ provided its outlook for 2022, expecting continued strong organic growth and productivity improvements to offset inflation, while year-over-year earnings comparison is negatively affected by the expected nonrecurrence of some of the tailwinds experienced in 2021.
Positive Outlook
- Organic revenue growth for parts and services in the range of 3% to 5%
- Diluted EPS attributable to LKQ stockholders in the range of $3.50 to $3.80
- Adjusted diluted EPS attributable to LKQ stockholders in the range of $3.72 to $4.02
- Operating cash flow of $1.3 billion
- Free cash flow at a minimum of $1.0 billion; targeting free cash flow conversion of EBITDA at 55 - 60%
Challenges Ahead
- 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 decrease from recent levels
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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