- LKQ’s adjusted EPS for Q3 from continuing operations was 88 cents, matching estimates.
- Total revenue for the quarter was $3.58 billion, showing a 0.4% year-over-year increase, but falling short of the $3.65 billion estimate.
- Revenue from parts and services reached $3.43 billion, an increase of 0.6% year-over-year, yet below the $3.48 billion estimate.
- Other revenue was reported at $157 million, a 2.5% decline year-over-year, but exceeded the estimate of $150.7 million.
- The gross margin for Q3 was 38.8%, slightly below last year’s 39%, but aligning with the estimate.
- Free cash flow totaled $341 million, reflecting a 0.9% year-over-year decline, but surpassing the estimated $281.7 million.
- The company expects a global effective tax rate of 27.0% for 2024.
- LKQ is focused on strategic transformation to counter softer overall volumes, as discussed in their September investor day.
- Despite achieving cost actions and synergy realization, the company does not expect these to fully offset the anticipated lower revenue in Q4.
- The company is maintaining its guidance for cash flow despite decreased profitability, relying on controlling working capital and capital expenditures.
- Analyst recommendations for LKQ include 8 buys and 2 holds.
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Lkq Corp on Smartkarma
On Smartkarma, independent analysts from Baptista Research provide coverage on LKQ Corporation, examining key drivers influencing the company’s performance. In the report “LKQ Corporation: Will The Focus on Niche Markets with High Margin Potential Pay Off? – Major Drivers,” the discussion delves into the challenges faced by LKQ in the second quarter of 2024 and strategic responses. Baptista Research evaluates internal priorities and external economic pressures impacting LKQ, aiming to assess factors that could influence the company’s future price through an independent valuation using a Discounted Cash Flow (DCF) methodology.
In another analysis titled “LKQ Corporation: Adoption and Expansion of Digital and Technological Solutions! – Major Drivers,” Baptista Research explores LKQ’s first quarter of 2024 earnings amid a challenging economic environment. While revenue growth was notable, other performance indicators softened, reflecting external and operational challenges. The report focuses on evaluating factors that may affect LKQ’s future price, utilizing a Discounted Cash Flow (DCF) methodology to conduct an independent valuation of the company’s prospects.
A look at Lkq Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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 well for long-term success. The company received strong scores in Value and Dividend, indicating solid financial health and attractive returns for investors. Growth and Momentum scores, although slightly lower, suggest opportunities for expansion and positive market sentiment surrounding the company. However, the Resilience score of 2 indicates some vulnerability to external factors, which investors should consider when evaluating the stock.
LKQ Corporation, specializing in automotive products and services, holds promising prospects according to the Smartkarma Smart Scores. With a robust value proposition and dividend performance, the company showcases financial strength and investor-friendly characteristics. While growth and momentum areas present potential areas for improvement, LKQ’s broad offerings in replacement parts for various vehicles across multiple regions position it well for future opportunities and market developments.
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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