LKQ Stock Slides Post Q4 Results

  • LKQ Corp LKQ reported fourth-quarter FY21 sales growth of 7.8% year-on-year, to $3.19 billion, beating the analyst consensus of $3.09 billion.
  • Revenue in North America rose 9.2% Y/Y, and Europe increased 4.3%.
  • The gross margin for the quarter expanded 30 basis points Y/Y to 39.9%. The operating margin contracted 20 basis points to 8.8%, and operating income for the quarter rose 4.8% to $280 million.
  • Adjusted EPS of $0.87 beat the analyst consensus of $0.77.
  • LKQ held $274.1 million in cash and equivalents as of December 31, 2021. The operating cash flow for the year totaled $1.4 billion with a free cash flow of $1.1 billion.
  • The company's quarterly cash dividend of $0.25 per share is payable on March 24, 2022, to stockholders of record on March 3, 2022.
  • Outlook: LKQ sees FY22 adjusted EPS of $3.72 - $4.02, against the consensus of $4.00.
  • The company expects FY22 organic revenue growth for part and services to be 3% - 5%.
  • Price Action: LKQ shares are trading lower by 6.58% at $51.94 in premarket on the last check Thursday.
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