NASDAQ$LKQ

LKQ Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

LKQ's third quarter results were announced, showcasing a blend of customer service and operational efficiency. Revenue reached $3.1 billion, with parts and services organic revenue growing by 4.8%. Diluted EPS stood at $0.95, while adjusted diluted EPS was $0.97. The company generated $273 million in operating cash flow and $224 million in free cash flow. LKQ deployed $343 million to repurchase 6.8 million shares and expanded its stock repurchase program by $1 billion. The dividend was increased by 10%, with $0.275 per share approved for the fourth quarter.

LKQ Corporation reported its third quarter 2022 financial results, with revenue reaching $3.1 billion. Parts and services organic revenue increased by 4.8%. Diluted EPS was $0.95, and adjusted diluted EPS was $0.97. The company generated $273 million in operating cash flow and $224 million in free cash flow.

  • Revenue of $3.1 billion; revenue on a constant currency basis of $3.3 billion.
  • Parts and services organic revenue growth of 4.8% (5.3% on a per day basis).
  • Diluted EPS of $0.95 (down 1.0%); adjusted diluted EPS of $0.97 (down 4.9%).
  • Third quarter operating cash flow of $273 million; free cash flow of $224 million.

Headline financials

Total Revenue

$3.1B

Previous: $3.3B-5.8%
EPS (adj)

$0.97

Previous: $1.02-4.9%
Free Cash Flow

$262M

Previous: $284M-7.8%
Net Income

$262M

Previous: $284M-7.8%
Operating Income

$358M

Previous: $378M-5.3%
Gross Profit

$1.28B

Previous: $1.34B-5.0%
Cash & Equivalents

$269M

Previous: $403M-33.2%
Total Assets

$11.7B

Previous: $12.5B-6.4%

Revenue & EPS history

LKQ · Revenue · Quarterly

$3.1B

Q3 2022-5.8%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

LKQ · $1.83B total across 2 segments · Q3 2022

  • Europe
    $1.38B-9.5%
  • Specialty
    $452M-2.8%

Forward guidance

LKQ updated its full year 2022 outlook, anticipating that benefits from operational excellence and capital allocation will be offset by weak foreign exchange rates and soft metals prices.

Tailwinds

  • Organic revenue growth for parts and services: 4.75% to 5.75%
  • Diluted EPS: $4.12 to $4.22
  • Adjusted diluted EPS: $3.85 to $3.95
  • Operating cash flow: $1.25 billion
  • Free cash flow: Approximately $1.0 billion

Headwinds

  • Weak foreign exchange rates relative to the US dollar
  • Soft metals prices
  • Current conditions and recent trends
  • Assumes current U.S. federal tax legislation remains unchanged
  • Prices of scrap and precious metals hold near the September average

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 Q3 2022

Historical avgQ3 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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