LKQ Q4 Topline Misses By A Whisker, Eyes Organic Revenue Growth In Each Of Its Operating Segments

Zinger Key Points
  • Dividend announced at $0.30 per share, with a strong outlook for 2024 including adjusted EPS of $3.90-$4.20.
  • LKQ reports 16.6% sales growth in Q4, slightly below consensus; adjusted EPS exceeds expectations.

LKQ Corp LKQ reported fourth-quarter fiscal 2023 sales growth of 16.6% year-over-year to $3.50 billion, missing the consensus of $3.51 billion.

Parts and services organic revenue increased by 2.8% (3.4% on a per-day basis).

The gross margin for the quarter contracted 80 basis points Y/Y to 40%. Operating income for the quarter declined 5.5% to $277 million, and the margin contracted by 190 bps to 7.9%.

Adjusted EPS improved to $0.84 from $0.78 a year ago, beating the consensus of $0.76.

LKQ's operating cash flow for the fiscal totaled $1.4 billion, and the free cash flow was $998 million. The company held $299 million in cash and equivalents as of December 31, 2023. 

Dividend: The company declared a quarterly cash dividend of $0.30 per share of common stock, payable on March 28, 2024, to stockholders of record at the close of business on March 14, 2024.

During the quarter, LKQ invested $30 million to repurchase 0.7 million shares, and for the year ended December 31, 2023, it invested $35 million to repurchase 0.8 million shares.

2024 Outlook: LKQ expects adjusted EPS of $3.90-$4.20, against the consensus of $4.11.

The company projects an organic revenue growth outlook for parts and services of 3.5% – 5.5% and sees an Operating cash flow of ~$1.35 billion.

Price Action: LKQ shares are trading higher by 3.3% at $51.99 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!