NASDAQ$LKQ

LKQ Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported solid results driven by operational excellence and strategic initiatives.

LKQ Corporation reported a revenue increase of 7.9% year-over-year, reaching $3.2 billion in Q4 2021. The company's diluted EPS increased by 37.3% to $0.81, and adjusted diluted EPS increased by 26.1% to $0.87.

  • Fourth quarter revenue increased by 7.9% year-over-year to $3.2 billion.
  • Parts and services organic revenue increased 6.6% (7.3% on a per day basis).
  • Diluted EPS increased 37.3% to $0.81, while adjusted diluted EPS increased 26.1% to $0.87.
  • The company invested $297 million repurchasing its common stock during the fourth quarter.

Headline financials

Total Revenue

$3.19B

Previous: $2.95B+7.9%
EPS (adj)

$0.87

Previous: $0.69+26.1%
Net Income

$236M

Previous: $180M+31.1%
Operating Income

$280M

Previous: $267M+4.8%
Gross Profit

$1.27B

Previous: $1.17B+8.5%
Cash & Equivalents

$274M

Previous: $312M-12.2%
Total Assets

$12.6B

Previous: $12.4B+2.0%

Revenue & EPS history

LKQ · Revenue · Quarterly

$3.19B

Q4 2021+7.9%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

LKQ · $1.9B total across 2 segments · Q4 2021

  • Europe
    $1.49B+4.3%
  • Specialty
    $410M+15.6%

Forward guidance

LKQ provided its outlook for 2022, expecting continued strong organic growth and productivity improvements to offset inflation, while year-over-year earnings comparison is negatively affected by the expected nonrecurrence of some of the tailwinds experienced in 2021.

Tailwinds

  • Organic revenue growth for parts and services in the range of 3% to 5%
  • Diluted EPS attributable to LKQ stockholders in the range of $3.50 to $3.80
  • Adjusted diluted EPS attributable to LKQ stockholders in the range of $3.72 to $4.02
  • Operating cash flow of $1.3 billion
  • Free cash flow at a minimum of $1.0 billion; targeting free cash flow conversion of EBITDA at 55 - 60%

Headwinds

  • Assumes current U.S. federal tax legislation remains unchanged
  • Exchange rates for the Canadian dollar, euro, and pound sterling hold near recent levels
  • The price of scrap and precious metals decrease from recent levels
  • Recovery from the coronavirus outbreak
  • Inflation

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 2021

Historical avgQ4 2021

+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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