• Parts & Services 1Q organic revenue fell by 0.3%, lower than the estimated 3.11%.
• Specialty parts organic revenue faced a change of -1.4%.
• The company’s revenue stands at $3.70 billion, which is an 11% increase year on year, but falls short of the estimate $3.76 billion.
• Parts and services revenue is $3.54 billion, that is up 12% from the last year, short of the estimated $3.61 billion.
• Other revenue is indicated at $168 million, which indicates a 15% drop from the previous year, compared to the estimate of $191.6 million.
• Gross margin stands at 39.2% which is a decrease from 41% y/y, it is marginally less than the estimated 39.9%.
• Free cash flow has seen a 22% year on year increase, coming up to $187 million, surpassing the expected $175.3 million.
• The North America wholesale ebitda margin is currently 16.3%, down from 20.5% y/y, falling short of an estimate of 17.1%.
• In Europe, the ebitda margin is 8.7% versus 9.7% y/y, slightly above the estimated 8.34%.
• Organic revenue parts & services growth is expected to be between +2.5% to +4.5%, with current estimate standing at 3.88%.
• Operating cash flow is expected to remain at $1.35 billion.
• Despite the revenue challenges in Q1, LKQ holds steady its adjusted earnings per share and free cash flow guidance for the year.
• Additional opportunities for synergies have been identified, leading to an increase in projected synergies from $55 million to $65 million.
• The organic revenue growth guidance has been lowered due to softer Q1 demand.
• LKQ currently holds a GAAP earnings per share guidance which is lower than previous due to higher restructuring and transaction related expenses.
• The stock currently has 7 buys, 3 holds, and 0 sells.
Lkq Corp on Smartkarma
On Smartkarma, analysts such as Joseph Boutross from Baptista Research are covering LKQ Corporation, a company that recently reported its Fourth Quarter and Full Year 2023 Earnings. The report emphasizes LKQ’s strong performance, particularly in achieving organic revenue growth for parts and services. According to Boutross, Vice President of Investor Relations, LKQ Corporation’s focus on operational excellence, driving organic revenue growth, and generating solid free cash flow are key factors contributing to its success.
Baptista Research‘s analysis, titled “LKQ Corporation: Driving Organic Revenue Growth Through Increased Fulfillment Rates and Productivity! – Major Drivers,” leans bullish on the company’s outlook. This research provides valuable insights into how LKQ Corporation is strategically positioned to leverage increased fulfillment rates and productivity to sustain its growth trajectory. Analyst coverage on Smartkarma offers investors a unique perspective on companies like LKQ Corp, helping them make informed investment decisions.
A look at Lkq Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, LKQ Corp is positioned for a promising long-term outlook. With a solid score of 4 for Growth and Momentum, the company seems well-equipped to expand and capitalize on market opportunities. The Growth score suggests that LKQ Corp has potential for future development and revenue growth, while the Momentum score indicates positive market sentiment and potential for continued upward movement.
Despite slightly lower scores in Value and Resilience at 3 and 2 respectively, LKQ Corp’s overall outlook remains optimistic. While Value and Resilience are important factors to consider, the strong scores in Growth and Momentum highlight the company’s potential for sustained success in the automotive products and services sector.
Summary: LKQ Corporation specializes in providing automotive products and services, offering alternative collision replacement parts, recycled engines, transmissions, and remanufactured engines. The company serves customers in North America, Central America, and Europe, providing replacement systems, components, and parts for automotive and heavy-duty truck repairs.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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