- LKQ’s organic revenue for parts and services declined by 3.4%, missing the estimate of a 1.06% decrease.
- European organic revenue fell by 4.9%, against the expected growth of 1.6%.
- Specialty parts organic revenue slightly decreased by 0.3%, but it was better than the anticipated 4.3% drop.
- Total revenue stood at $3.64 billion, a 1.9% decrease year-over-year, just above the expected $3.63 billion.
- Revenue from parts and services was $3.48 billion, down 2.1% year-over-year, narrowly missing the forecast of $3.49 billion.
- Other revenue increased by 3.8% year-over-year to $165 million, exceeding the estimate of $151.5 million.
- Gross margin remained steady at 38.8%, slightly below the expected 39.2%.
- Free cash flow surged by 83% year-over-year to $243 million, though it fell short of the estimated $264.8 million.
- The EBITDA margin for North America wholesale was 15.8%, down from 17.3% year-over-year, missing the 16.5% estimate.
- Europe’s EBITDA margin was 9.4%, below both the previous year’s 10.6% and the estimated 10.2%.
- Analyst recommendations include 7 buy ratings, 2 hold ratings, and no sell ratings.
Lkq Corp on Smartkarma
Analysts at Baptista Research have provided insightful coverage on LKQ Corp on Smartkarma. In their report titled “LKQ Corporation: An Insight Into Its North American Business Strategy And Its Market Position In Aftermarket Collision Parts,” they highlighted the company’s recent financial performance, which showed a mix of positive developments and ongoing challenges. Despite reporting a $0.06 increase in diluted earnings per share compared to the previous year, the adjusted EPS saw a slight decline due to decreased segment EBITDA dollars in LKQ’s North American market.
In another report by Baptista Research, titled “LKQ Corporation: Are Its Efforts Towards Productivity Enhancements & Cost Management Paying Off?,” analysts delved into the company’s financial results for the fourth quarter and full year 2024. Despite facing a challenging market environment, LKQ Corp demonstrated resilience through strategic initiatives and operational improvements. The analysts highlighted the company’s focus on operational excellence and strategic capital allocation as positive factors amidst the challenges.
A look at Lkq Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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 the Smartkarma Smart Scores for LKQ Corp, the company is positioned for a positive long-term outlook across various factors. With strong scores in Value and Dividend at 4, it indicates competitiveness in pricing and investor returns. The Growth, Resilience, and Momentum scores at 3 reflect a stable performance with room for potential improvement. LKQ Corp’s focus on offering automotive products and services, including replacement parts and engines, positions it well in the market.
LKQ Corporation’s Smartkarma Smart Scores highlight its solid foundation in the industry. The company’s emphasis on value and dividends, alongside its offerings of automotive parts and solutions, showcases its commitment to customer satisfaction and shareholder value. Although growth, resilience, and momentum scores are slightly lower, there is potential for LKQ Corp to enhance these aspects over time, further solidifying its position in the automotive market.
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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