LKQ Corporation Announces Results for Second Quarter 2024

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]