LKQ (US:LKQ) ZACKS·2025-02-20 16:55Core Insights - LKQ Corporation reported adjusted earnings of 80 cents per share for Q4 2024, exceeding the Zacks Consensus Estimate of 75 cents but down from 84 cents in the same quarter last year. Quarterly revenues were $3.36 billion, missing the estimate of $3.42 billion and declining from $3.5 billion year-over-year. Organic revenues from parts and services decreased by 3.6% year-over-year [1]. Segment Highlights - The Wholesale North American segment generated revenues of $1.37 billion, a decrease of 6.9% year-over-year, and fell short of the estimate of $1.44 billion. EBITDA for this segment was $231 million, surpassing the forecast of $216.1 million but lower than $239 million from Q4 2023 [3]. - Revenues from the European segment were $1.51 billion, down 2.3% year-over-year, and missed the estimate of $1.56 billion. The segment's EBITDA increased to $152 million from $129 million year-over-year, exceeding the forecast of $132 million [4]. - The Specialty segment reported revenues of $349 million, a decline of 5.9% year-over-year, but exceeded the projection of $337.2 million. EBITDA for this segment was $14 million, down from $21 million year-over-year and below the forecast of $17.1 million [5]. - The Self-Service segment achieved revenues of $131 million, an increase of 11% year-over-year, surpassing the estimate of $100.3 million. The segment's EBITDA was $11 million, exceeding the estimate of $5.7 million and up from $7 million in the previous year [6]. Financial Position & Dividend - As of December 31, 2024, LKQ had cash and cash equivalents of $234 million, down from $299 million a year earlier. Long-term obligations rose to $4.13 billion from $3.66 billion year-over-year, with total debt at $4.2 billion [7]. - In 2024, cash flow from operating activities totaled $1.12 billion, with positive free cash flow of $810 million. During Q4 2024, the company repurchased 2.1 million shares for $80 million, totaling approximately 65 million shares repurchased for $2.8 billion since the buyback program began in late October 2018 [8]. - LKQ announced a quarterly cash dividend of 30 cents per share, payable on March 27, 2025, to stockholders of record as of March 13, 2025 [9]. 2025 Guidance - For 2025, LKQ anticipates organic revenue growth in parts and services to be between 0-2% year-over-year. The company expects adjusted EPS in the range of $3.40-$3.70 compared to $3.48 in 2024, with operating cash flow projected between $1.075 billion and $1.275 billion, and free cash flow expected to be between $750 million and $900 million [10].