NASDAQ$LKQ

LKQ Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

LKQ's Q4 2019 financial performance showed revenue increase of 0.2%, net income rose by 247%, and diluted EPS increased by 254%.

LKQ Corporation reported a slight increase in revenue for Q4 2019, alongside significant growth in net income and diluted EPS. The company's focus on profitable revenue growth, margin expansion, and cash flow enhancement drove strong operating and free cash flow figures for the year.

  • Revenue increased by 0.2% to $3.01 billion.
  • Parts and services organic revenue increased 0.9%.
  • Net income increased by 247% to $140 million.
  • Diluted EPS increased by 254% to $0.46.

Headline financials

Total Revenue

$3.01B

Previous: $3B+0.2%
EPS (adj)

$0.54

Previous: $0.48+12.5%
Net Income

$141M

Previous: $36M+291.9%
Operating Income

$207M

Previous: $164M+26.0%
Gross Profit

$1.2B

Previous: $1.16B+2.9%
Cash & Equivalents

$528M

Previous: $332M+59.3%
Total Assets

$12.8B

Previous: $11.4B+12.2%

Revenue & EPS history

LKQ · Revenue · Quarterly

$3.01B

Q4 2019+0.2%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

LKQ · $1.72B total across 2 segments · Q4 2019

  • Europe
    $1.42B-0.1%
  • Specialty
    $302M-6.0%

Forward guidance

LKQ provided guidance for the full year 2020, based on current conditions and acquisitions completed through February 20, 2020. The guidance assumes no material disruptions from Brexit, the coronavirus outbreak, or other significant geopolitical events, and is based on stable scrap prices and exchange rates.

Tailwinds

  • Emphasis on profitable revenue growth.
  • Accretive margins.
  • Free cash flow generation.
  • Expect revenue growth to moderate from historic levels.
  • Operational focus and active working capital management are expected to sustain cash conversion near the heightened 2019 level.

Headwinds

  • No material disruptions associated with the United Kingdom’s recent announcement of its exit from the European Union
  • No material disruptions with the global supply-chain from the coronavirus outbreak
  • No material disruptions from other significant geopolitical events.
  • Guidance is based on scrap prices remaining at current prices
  • Guidance is based on exchange rates for the British pound, Euro and Canadian dollar holding near current levels.

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 Q4 2019

Historical avgQ4 2019

+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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