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Dec 31, 2023
LKQ Q4 2023 Earnings Report
LKQ's fourth quarter performance in 2023 showed strong revenue growth, driven by parts and services, while navigating macroeconomic challenges and commodity price fluctuations.
Key Takeaways
LKQ Corporation reported a 16.6% increase in revenue for Q4 2023, reaching $3.5 billion. Diluted EPS was $0.69, and adjusted diluted EPS was $0.84. The company highlighted solid organic revenue growth, improved Segment EBITDA, and strong cash flow generation despite challenging macroeconomic conditions.
Revenue increased by 16.6% to $3.5 billion compared to Q4 2022.
Parts and services organic revenue increased by 2.8% (3.4% on a per day basis).
Diluted EPS was reported at $0.69, with adjusted diluted EPS at $0.84.
Net income for the quarter was $184 million, compared to $193 million in the same period of 2022.
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 outlook for the full year 2024, anticipating organic revenue growth for parts and services between 3.5% and 5.5%, diluted EPS between $3.43 and $3.73, and adjusted diluted EPS between $3.90 and $4.20.
Positive Outlook
- Emphasis on profitable revenue growth.
- Focus on free cash flow generation.
- Expected organic revenue growth from each operating segment.
- Margin enhancement initiatives to boost profitability.
- Anticipated return to double-digit Europe Segment EBITDA margins.
Challenges Ahead
- Guidance based on current conditions and recent trends.
- Assumes a global effective tax rate of 26.8%.
- Relies on stable prices of scrap and precious metals near December averages.
- Assumes no further deterioration due to the Ukraine/Russia conflict.
- Subject to changes in foreign currency exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income