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Dec 31, 2022
LKQ Q4 2022 Earnings Report
LKQ's fourth quarter results reflected a decrease in revenue but solid performance in North America and Europe.
Key Takeaways
LKQ Corporation reported a decrease in revenue for the fourth quarter of 2022, with revenue at $3.0 billion, a 5.8% decrease compared to Q4 2021. Diluted EPS was $0.72, down 11.1%, and adjusted diluted EPS was $0.78, down 10.3%. Despite the revenue decrease, the Wholesale - North America and Europe segments delivered strong organic revenue growth and solid margins.
Fourth quarter revenue was $3.0 billion, a decrease of 5.8% year-over-year.
Parts and services organic revenue increased by 4.5% (5.9% on a per day basis).
Diluted EPS was $0.72, a decrease of 11.1% year-over-year, while adjusted diluted EPS was $0.78, a decrease of 10.3%.
Net income for the fourth quarter was $193 million, compared to $235 million in the same period of 2021.
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 provided its 2023 full year outlook, anticipating organic revenue growth for parts and services between 6.0% and 8.0%, diluted EPS between $3.68 and $3.98, adjusted diluted EPS between $3.90 and $4.20, operating cash flow of approximately $1.275 billion, and free cash flow of approximately $975 million.
Positive Outlook
- Organic revenue growth for parts and services is expected to be between 6.0% and 8.0%.
- Diluted EPS is projected to be between $3.68 and $3.98.
- Adjusted diluted EPS is expected to be between $3.90 and $4.20.
- Operating cash flow is anticipated to be approximately $1.275 billion.
- Free cash flow is projected to be approximately $975 million.
Challenges Ahead
- The outlook assumes a global effective tax rate of 26.3%.
- The outlook assumes the prices of scrap and precious metals hold near the December average.
- The outlook assumes no further deterioration due to the Ukraine/Russia conflict.
- The outlook assumes foreign currency exchange rates near January average levels, including $1.08 and $1.22 for the euro and pound sterling, respectively.
- The outlook assumes a $45 million to $55 million increase in annual interest expense relative to 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income