- Organic revenue from parts and services fell by 2.1%, missing the estimated increase of 1.47%.
- Total revenue for the quarter was $3.71 billion, up 7.6% year-over-year, but short of the $3.87 billion estimate.
- Revenue from parts and services reached $3.55 billion, an increase of 9% year-over-year, but below the expected $3.73 billion.
- Other revenue totaled $159 million, down 16% year-over-year, and missed the estimate of $171 million.
- Gross margin was 38.8%, compared to 41% from the previous year, and fell short of the 39.8% estimate.
- Free cash flow was $133 million, a significant decrease of 68% year-over-year, and below the $244.6 million estimate.
- The company expressed confidence that actions being taken will enhance shareholder value despite challenging conditions.
- Full-year guidance has been lowered due to projected continuation of revenue headwinds experienced in the first half of 2024.
- Cost reduction measures are being implemented, but are not expected to fully offset the impact of lower revenue expectations.
- Wall Street ratings include 8 buys, 2 holds, and 0 sells.
Lkq Corp on Smartkarma
Analysts on Smartkarma are closely monitoring LKQ Corporation, a company in the automotive parts industry, to provide valuable insights for investors. Baptista Research, a renowned analyst on the platform, recently published two reports on LKQ Corp.
In the first report titled “LKQ Corporation: Adoption and Expansion of Digital and Technological Solutions! – Major Drivers,” Baptista Research delves into LKQ Corporation’s first quarter of 2024 earnings. Despite challenges in the economic environment, the company experienced significant revenue growth, though other performance indicators softened. Baptista Research is assessing various factors that could impact the company’s future stock price using a Discounted Cash Flow (DCF) methodology.
The second report, “LKQ Corporation: Driving Organic Revenue Growth Through Increased Fulfillment Rates and Productivity! – Major Drivers,” focuses on LKQ Corporation’s Fourth Quarter and Full Year 2023 earnings. Joseph Boutross, Vice President of Investor Relations at LKQ Corporation, highlighted the company’s strong organic revenue growth for parts and services. The emphasis on operational excellence and organic revenue growth showcases LKQ Corporation’s commitment to driving financial success and generating free cash flow.
A look at Lkq Corp Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 3 | |
Dividend | 3 | |
Growth | 4 | |
Resilience | 2 | |
Momentum | 3 | |
OVERALL SMART SCORE | 3.0 |
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 shows a promising long-term outlook. With a solid Growth score of 4, the company is positioned for potential expansion and increasing market presence in the automotive industry. This factor indicates positive prospects for LKQ’s future revenue and business growth.
However, LKQ Corp scores lower in Resilience with a rating of 2, suggesting some vulnerabilities that may pose challenges in adverse economic conditions. While Value, Dividend, and Momentum scores all fall in the mid-range at 3, these factors imply a moderate overall performance in terms of valuation, dividend payment, and market momentum.
### LKQ Corporation offers automotive products and services. The Company provides alternative collision replacement parts, recycled engines and transmissions, as well as remanufactured engines. LKQ offers customers in North America, Central America and Europe replacement systems, components and parts for the repair of automobiles and light, medium, and heavy-duty trucks. ###
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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