- LKQ has reduced its forecast for the full-year operating cash flow to $1.08 billion, which was previously estimated between $1.08 billion and $1.28 billion.
- The company expects adjusted EPS from continuing operations to be between $3.40 and $3.70, with an estimate of $3.53.
- LKQ projects free cash flow of $750 million, slightly below the estimate of $763.8 million.
- In the first quarter results, LKQ reported an adjusted EPS from continuing operations at 79 cents, meeting the estimate.
- Organic revenue from parts and services decreased by 4.3%, more than the estimated decline of 3.51%.
- The specialty parts organic revenue saw a decline of 6.4%, exceeding the estimated drop of 2.48%.
- Total revenue was $3.46 billion, declining by 6.5% year-over-year, and falling short of the $3.59 billion estimate.
- Parts and services revenue reached $3.30 billion, a 6.8% year-over-year decrease, missing the estimated $3.4 billion.
- Other revenue was steady at $168 million, in line with the estimate of $167.5 million.
- The gross margin improved to 39.8% from 39.2% year-over-year, surpassing the estimate of 39.2%.
- In North America, the wholesale EBITDA margin was 15.7%, matching the estimate but down from 16.3% a year ago.
- Europe’s EBITDA margin improved to 9.3%, up from 8.7% year-over-year, exceeding the estimate of 8.77%.
- The company’s outlook for 2025 is based on current conditions and trends, assuming a global effective tax rate of 27.0% and stable scrap and precious metal prices.
- Analyst recommendations include 7 buy ratings, 2 hold ratings, and no sell ratings.
Lkq Corp on Smartkarma
Independent analysts on Smartkarma, including Baptista Research, have been closely covering LKQ Corporation, a company that recently reported its financial performance for the fourth quarter and full year of 2024. The analysts have highlighted the key achievements and challenges faced by LKQ across its global operations. Despite operating in a complex market environment, LKQ showed resilience through strategic initiatives and operational improvements. The company’s emphasis on operational excellence and strategic capital allocation has been noted as positive factors by analysts at Baptista Research.
Furthermore, Baptista Research delved into LKQ Corporation’s Third Quarter 2024 earnings, analyzing the impact of revenue diversification and margin improvement strategies on the company’s performance. Despite facing challenges, the company’s focus on operational excellence, shareholder returns, and strategic growth initiatives is seen as setting a clear path for future developments. Baptista Research aims to evaluate various factors that could influence LKQ Corporation’s stock price in the near future, conducting an independent valuation using a Discounted Cash Flow (DCF) methodology to assess the company’s potential.
A look at Lkq Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, LKQ Corp, which offers automotive products and services, seems to have a positive long-term outlook. With a strong momentum score of 5, the company appears to be on a path of consistent growth and performance. Additionally, LKQ Corp scores well in areas such as dividends and resilience, reflecting a stable and rewarding investment potential for shareholders.
While the company scores a bit lower in terms of value and growth, with scores of 3 for both factors, the overall outlook remains optimistic. LKQ Corp’s focus on providing alternative collision replacement parts and recycled engines positions it well to continue catering to customers in North America, Central America and Europe, thereby enhancing its market presence and profitability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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