LKQ Corp (LKQ)

LKQ Corp (LKQ) stock fell by 141.88% following its first-quarter 2024 earnings report, which missed analysts' estimates, leading to a negative sentiment from investors.

• Q1 2024 results: The company reported adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of 94 cents and down from $1.04 reported in the year-ago period. Quarterly revenues were $3.7 billion, missing the Zacks Consensus Estimate of $3.79 billion but up from the year-ago level of $3.35 billion. Parts and services organic revenues decreased by 0.3% year over year.
• Financial Position and Outlook: LKQ had cash and cash equivalents of $344 million as of Mar 31, 2024, up from $299 million recorded as of Dec 31, 2023. Long-term obligations amounted to $4.16 billion as of Mar 31, 2024. The company recorded a positive free cash flow of $187 million. LKQ announced a quarterly cash dividend of 30 cents per share, payable on May 30, 2024.
• Revised 2024 Guidance: For full-year 2024, LKQ expects organic revenue growth for parts and services to increase 2.5-4.5% year over year, down from the previous guided range of 3.5-5.5%. Diluted earnings per share (EPS) are expected to be in the range of $3.32-$3.62, down from the previous guidance of $3.43-$3.73. Estimates for adjusted diluted EPS, operating cash flow, and free cash flow remain unchanged.

Shares of LKQ Corporation (LKQ) dropped by 5.92% from $46.92 to $44.14 in the trading on Thursday, October 26, 2023. The reason why LKQ stock down is due to its mixed Q3 results:

• Earnings Miss: LKQ reported adjusted earnings of 86 cents per share for Q3 2023, below the Zacks Consensus Estimate of 95 cents and a decrease from the previous year.
• Revenue Growth: Although LKQ's quarterly revenues of $3,568 million exceeded the Zacks Consensus Estimate of $3,489 million, it was overshadowed by the earnings miss. Nevertheless, parts and services organic revenues increased by 3%.
• Segment Performance: LKQ's segments had mixed results, with strong revenue growth in Wholesale North American and European segments but some challenges in EBITDA.
• Financial Position: LKQ's financial position showed an increase in cash and cash equivalents but also a rise in long-term obligations, resulting in a total debt of $4.4 billion as of September 30, 2023.
• Guidance Update: LKQ adjusted its 2023 guidance, lowering its adjusted EPS range and forecasting lower organic revenue growth for parts and services. These factors collectively contributed to the decline in LKQ's stock price on that day.