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

Total Revenue

$3.57B

Previous: $3.1B+14.9%
EPS (adj)

$0.86

Previous: $0.97-11.3%
Capital Expenditures

-$97M

No prior period
Free Cash Flow

$208M

Previous: $262M-20.6%
Net Income

$208M

Previous: $262M-20.6%
Operating Income

$308M

Previous: $358M-14.0%
Gross Profit

$1.39B

Previous: $1.28B+8.9%
Cash & Equivalents

$401M

Previous: $269M+49.1%
Total Assets

$15.2B

Previous: $11.7B+30.0%

Revenue & EPS history

LKQ · Revenue · Quarterly

$3.57B

Q3 2023+14.9%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

LKQ · $2.04B total across 2 segments · Q3 2023

  • Europe
    $1.58B+14.9%
  • Specialty
    $456M+0.9%

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

Historical avgQ3 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

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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