Core Insights - LKQ Corporation reported second quarter 2024 financial results, indicating that performance did not meet expectations due to lower repairable claims in North America and challenging macroeconomic conditions in Europe, leading to overall volume declines [1][7] Financial Performance - Revenue for Q2 2024 was $3.7 billion, a 7.6% increase from $3.4 billion in Q2 2023. Organic revenue for parts and services decreased by 2.1%, while acquisitions and divestitures contributed an 11.8% increase, and foreign exchange rates had a negative impact of 0.6%, resulting in a total parts and services revenue increase of 9.0% [2][12] - Adjusted net income for Q2 2024 was $261 million, down 10.4% from $291 million in Q2 2023. Adjusted diluted earnings per share (EPS) was $0.98, a decrease of 10.1% from $1.09 in the same period last year [13][56] - Operating cash flow for Q2 2024 was $213 million, with free cash flow at $133 million. For the first half of 2024, cash flow from operations was $466 million and free cash flow was $320 million [4][12] Shareholder Returns - The company repurchased approximately 59 million shares for a total of $2.6 billion through June 30, 2024, with $921 million remaining on the authorization [5][15] - A dividend of $0.30 per share was approved to be paid in Q3 2024 [12] Strategic Actions - LKQ entered into agreements to divest operations in Slovenia, Poland, and Bosnia, as these did not align with long-term strategy and financial return objectives [6] Updated Guidance - The company lowered its full-year guidance for 2024, projecting organic revenue growth for parts and services to be between -1.25% and 0.25%, down from a previous range of 2.5% to 4.5%. Diluted EPS guidance was also reduced to $2.71 to $2.91 from $3.32 to $3.62 [7][12]

Mr. Clarke has over 20 years of experience in the transportation industry. Mr. Clarke currently serves on the board of Element Fleet Management, a TSX-listed global leader in the fleet management industry. Mr. Clarke previously served as the Chief Financial Officer of C.H. Robinson, Inc., a NASDAQ-listed corporation and one of the world's largest third-party logistics providers, a position he held from 2015 to 2019. From 2007 to 2013, Mr. Clarke was the Chief Executive Officer of Panther Expedited Services, ...

CHICAGO, July 22, 2024 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) ("LKQ" or the "Company") today announced the appointment of Andrew Clarke to the Company's Board of Directors (the "Board") as a new independent director, effective July 22, 2024. With the addition of Mr. Clarke, the LKQ Board will consist of ten members, eight of whom are independent. "I am honored to join the Board of LKQ, an impressive company with unique strengths including marketleading positions and a track record of operational ...

But, for LKQ, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside. Here's Why There Could be Plenty of Upside Left in LKQ However, a tight clustering of price targets, which is represented by a ...

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an incom ...

Company Overview - LKQ Corporation is the largest provider of alternative collision replacement parts globally, including recycled and aftermarket parts [2] - The company acquires damaged vehicles, refurbishes parts, and sells them to repair shops, often at 20-40% lower costs than OEM parts [2] - Approximately 50% of LKQ's revenue is generated in the US, with 23% from Europe, and the remainder from countries like Mexico, India, and Taiwan [3] Investment Thesis - There is a secular trend towards increased utilization of aftermarket parts, which grew from 23% to 38% over 20 years until 2020, although this trend was disrupted by the pandemic [3] - As inflation normalizes, the utilization of aftermarket parts is expected to rise again, supported by insurance companies' directives to use alternative parts [4] - In Europe, alternative part utilization is under 10%, indicating significant growth potential for LKQ as it partners with insurers [4] - LKQ benefits from scale in a fragmented market, utilizing sophisticated inventory management and logistics systems to enhance efficiency [4] - The company is shifting focus towards organic growth, with expectations of higher EBITDA margins and strong free cash flow conversion under new CEO Justin Jude [4] - LKQ is projected to achieve annualized EPS growth of over 10% in the next five years [4] Market Sentiment - LKQ's stock is perceived as undervalued, trading at a current EV/EBITDA of 8x compared to a historical range of 9-14x [5] - The stock trades at 11x P/E, below the historical range of 12-20x, suggesting potential for significant upside [5] - The company could reach a stock price of $50-60 within the next year and potentially double over the next 4-5 years [5]

LKQ will host a conference call and webcast on July 25, 2024 at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) with members of senior management to discuss the Company's results. To access the investor conference call, please dial (833) 470-1428. International access to the call may be obtained by dialing (404) 975-4839. The investor conference call will require you to enter conference ID: 893094. A replay of the conference call will be available by telephone at (866) 813-9403 or (929) 458-6194 for interna ...

Conference Call Details Webcast and Presentation Details A replay of the conference call will be available by telephone at (866) 813-9403 or (929) 458-6194 for international calls. The telephone replay will require you to enter conference ID: 131497. An online replay of the audio webcast will be available on the Company's website. Both formats of replay will be available through August 9, 2024. Please allow approximately two hours after the live presentation before attempting to access the replay. LKQ Corpo ...

CHICAGO, June 21, 2024 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today announced that a new collective bargaining agreement has been agreed with the trade union Verdi. The agreement covers approximately 5,000 employees of LKQ Europe in Germany, including 730 colleagues at LKQ's SulzbachRosenberg distribution center. The collective bargaining agreement has a two-year duration, which expires on April 30, 2026. The tariff agreement includes a mandatory peace obligation, which immediately ends all strik ...

CHICAGO, June 21, 2024 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today announced that a new collective bargaining agreement has been agreed with the trade union Verdi. The agreement covers approximately 5,000 employees of LKQ Europe in Germany, including 730 colleagues at LKQ's SulzbachRosenberg distribution center. The collective bargaining agreement has a two-year duration, which expires on April 30, 2026. The tariff agreement includes a mandatory peace obligation, which immediately ends all strik ...