LKQ (LKQ) Up 1.5% Since Last Earnings Report: Can It Continue?

Core Insights - LKQ's recent earnings report showed adjusted earnings of 82 cents per share for Q1 2024, missing the consensus estimate of 94 cents and declining from $1.04 in the previous year [2] - The company reported quarterly revenues of $3.7 billion, which fell short of the consensus estimate of $3.79 billion but increased from $3.35 billion year-over-year [3] Segment Performance - The Wholesale North American segment generated revenues of $1.5 billion, a 22% increase year-over-year, but missed the estimate of $1.54 billion. EBITDA for this segment was $244 million, slightly above the forecast but lower than $252 million from Q1 2023 [4] - The European segment's revenues were $1.64 billion, up 5.7% year-over-year, but also missed the estimate of $1.71 billion. EBITDA decreased to $143 million from $151 million year-over-year [5] - The Specialty segment reported revenues of $423 million, a 6.5% increase year-over-year, exceeding the projection of $401.4 million. However, EBITDA declined to $27 million from $31 million in the previous year [6] - The Self-Service segment saw revenues of $137 million, down 18.9% year-over-year, missing the prediction of $141.6 million. EBITDA was $16 million, surpassing the estimate but down from $22 million year-over-year [7] Financial Position - As of March 31, 2024, LKQ had cash and cash equivalents of $344 million, an increase from $299 million at the end of 2023. Long-term obligations rose to $4.16 billion from $3.65 billion [8] - Operating cash flow for Q1 2024 was $253 million, with positive free cash flow of $187 million. The company repurchased 0.6 million shares worth $30 million during the quarter [9] Dividend and Guidance - LKQ announced a quarterly cash dividend of 30 cents per share, payable on May 30, 2024 [10] - The company revised its full-year 2024 guidance, expecting organic revenue growth for parts and services to be between 2.5% and 4.5%, down from the previous range of 3.5% to 5.5%. Diluted EPS guidance was also lowered to a range of $3.32 to $3.62 [11] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 6.33% recently [13] - LKQ currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [15]