NASDAQ$LKQ
LKQ Corp · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
LKQ's third quarter results reflected both tailwinds and headwinds, with strong organic growth in Wholesale - North America and Europe segments offset by unusual items in Europe, soft commodity prices, and difficult market conditions in Specialty and Self Service segments.
LKQ Corporation reported a 15% increase in revenue to $3.6 billion for the third quarter of 2023. Diluted EPS was $0.77, while adjusted diluted EPS was $0.86. The company experienced strong organic growth in its Wholesale - North America and Europe segments, but faced challenges due to unusual items in Europe, soft commodity prices, and difficult market conditions in its Specialty and Self Service segments.
- Revenue of $3.6 billion, a 15% increase compared to the same period in 2022.
- Parts and services organic revenue increased 3.0% (4.3% on a per day basis).
- Diluted EPS of $0.77; adjusted diluted EPS of $0.86.
- Third quarter operating cash flow of $441 million; free cash flow of $344 million.
Headline financials
Revenue & EPS history
LKQ · Revenue · Quarterly
$3.57B
Revenue by segment
LKQ · $2.04B total across 2 segments · Q3 2023
- Europe$1.58B+14.9%77.6%
- Specialty$456M+0.9%22.4%
Forward guidance
LKQ is reducing its full year guidance on revenue and earnings per share due to underperformance in the third quarter and expected fourth quarter effects from additional strike activity in Germany, the anticipated dilution from the Uni-Select acquisition, soft commodity prices, and a continuation of difficult market conditions for our Specialty and Self Service segments. The company is raising its free cash flow guidance due to continued solid cash flow generation.
Tailwinds
- Organic revenue growth for parts and services: 4.75% to 5.75%
- Free cash flow approximately $1.0 billion
- Free cash flow conversion of Adjusted EBITDA 55% to 60%
Headwinds
- Diluted EPS: $3.41 to $3.55
- Adjusted diluted EPS: $3.68 to $3.82
- Expected fourth quarter effects from additional strike activity in Germany
- Anticipated dilution from the Uni-Select acquisition
- Soft commodity prices, and a continuation of difficult market conditions for our Specialty and Self Service segments
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 2023
+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
| Quarter | Report date | Reaction (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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