NASDAQ$LKQ

LKQ Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

LKQ Corporation reported year-over-year improvement in revenue and earnings per share for Q1 2022.

LKQ Corporation announced strong Q1 2022 results with a revenue of $3.3 billion, a 5.6% increase year-over-year. Diluted EPS was $0.94, up 6.8%, and adjusted diluted EPS was $1.00, up 6.4%. The company also raised its 2022 organic revenue and EPS outlook.

  • Revenue of $3.3 billion, up 5.6% year-over-year.
  • Parts and services organic revenue increased 6.9%.
  • Diluted EPS of $0.94, up 6.8%; adjusted diluted EPS of $1.00, up 6.4%.
  • Operating cash flow of $409 million; free cash flow of $350 million.

Headline financials

Total Revenue

$3.35B

Previous: $3.17B+5.6%
EPS (adj)

$1.00

Previous: $0.94+6.4%
Free Cash Flow

$273M

Previous: $266M+2.7%
Net Income

$273M

Previous: $266M+2.7%
Operating Income

$371M

Previous: $371M-0.1%
Gross Profit

$1.36B

Previous: $1.29B+4.9%
Cash & Equivalents

$327M

Previous: $590M-44.6%
Total Assets

$12.8B

Previous: $12.7B+0.9%

Revenue & EPS history

LKQ · Revenue · Quarterly

$3.35B

Q1 2022+5.6%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

LKQ · $1.94B total across 2 segments · Q1 2022

  • Europe
    $1.48B+1.8%
  • Specialty
    $460M+0.4%

Forward guidance

LKQ raised its 2022 full year outlook for organic revenue growth for parts and services to 4.5% to 6.5% and diluted EPS to $3.57 to $3.87 and adjusted diluted EPS to $3.80 to $4.10. Operating cash flow is expected to be $1.3 billion and free cash flow is expected to be at least $1.0 billion.

Tailwinds

  • Encouraged by the demand outlook for our segments
  • Continue to generate strong free cash flow
  • Committed to investing in the business to drive long-term sustainable earnings growth
  • Maintaining an investment grade debt rating
  • Returning excess free cash flow to shareholders via share repurchases and quarterly dividends

Headwinds

  • Based on current conditions and recent trends
  • Assumes current U.S. federal tax legislation remains unchanged
  • The prices of scrap and precious metals hold near the first quarter average
  • The Ukraine/Russia conflict continues without further escalation
  • Changes in these conditions may impact our ability to achieve the estimates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.3%

Avg return

30 days after

57%

39 / 69 earnings

Positive

+12.9%

Q2 2013

Best reaction

-15.8%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%-7.8%-11.6%
Q4 2025-1.0%+0.9%-14.9%
Q3 2025+3.7%+1.2%-1.2%
Q2 2025-0.5%-1.4%+1.9%
Q1 2025-11.6%-10.6%-4.6%
Q4 2024+6.0%+5.4%+2.5%
Q3 2024-0.6%-1.1%+1.9%
Q2 2024-9.7%-8.2%-4.2%
Q1 2024-11.5%-10.8%-13.3%
Q4 2023+3.7%+5.2%+4.9%
Q3 2023-7.2%-6.4%-2.3%
Q2 2023-5.2%-3.5%-9.9%
Q1 2023+2.7%+1.8%-4.7%
Q4 2022+1.5%+1.0%-5.1%
Q3 2022+3.8%+0.1%+2.7%
Q2 2022+2.2%+2.0%+0.6%
Q1 2022+0.3%+2.7%+5.8%
Q4 2021-11.6%-13.5%-15.9%
Q3 2021+1.6%+4.3%+6.2%
Q2 2021+1.7%+4.4%+4.3%
Q1 2021+2.6%+5.8%+12.0%
Q4 2020+5.5%+4.8%+18.0%
Q3 2020+7.5%+15.5%+20.9%
Q2 2020-0.7%+1.5%+14.9%
Q1 2020-1.9%-1.3%+8.5%
Q4 2019-2.8%-7.9%-52.1%
Q3 2019+11.6%+13.4%+12.1%
Q2 2019+5.7%+2.5%-3.0%
Q1 2019-4.5%-4.3%-15.6%
Q4 2018+2.1%+1.9%+4.1%
Q3 2018+2.7%+3.9%+6.5%
Q2 2018+0.7%-0.5%-0.3%
Q1 2018-15.8%-19.5%-18.2%
Q4 2017-3.6%-5.4%-10.6%
Q3 2017+0.5%+3.1%+4.1%
Q2 2017+5.1%+4.3%+4.4%
Q1 2017+3.5%+4.2%+4.5%
Q4 2016-3.5%-4.4%-11.1%
Q3 2016-3.4%-3.9%+0.5%
Q2 2016+0.7%+1.1%+4.5%
Q1 2016-6.2%
Q4 2015+8.6%
Q3 2015+0.5%
Q2 2015+0.3%
Q1 2015+10.1%
Q4 2014-11.7%
Q3 2014+3.4%
Q2 2014+0.9%
Q1 2014+7.0%
Q4 2013-4.1%
Q3 2013-1.9%
Q2 2013+12.9%
Q1 2013+7.1%
Q4 2012-10.9%
Q3 2012+3.2%
Q2 2012+5.9%
Q1 2012+11.4%
Q4 2008-0.1%
Q4 2011-0.1%
Q3 2011-2.4%
Q2 2011-1.2%
Q1 2010+0.6%
Q1 2011+1.5%
Q4 2010-0.2%
Q3 2009-1.1%
Q3 2010-1.1%
Q4 2009+3.4%
Q2 2009+3.4%
Q2 2010+3.4%

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