LKQ Q3 Earnings Top Estimates, Lifts FY21 Outlook, Initiates Dividend

LKQ Corp LKQ reported third-quarter FY21 sales growth of 8.2% year-on-year, to $3.296 billion, beating the analyst consensus of $3.28 billion.
Revenue in North America rose 6.9% Y/Y, and Europe increased 2.7%.
The gross margin for the quarter expanded 150 basis points Y/Y to 40.8%. The operating margin expanded 180 basis points to 11.5%, and operating income for the quarter rose 27.8% to $378.15 million.
LKQ held $402.7 million in cash and equivalents as of September 30, 2021. Operating cash flow totaled $429 million, and free cash flow amounted to $384 million.
Adjusted EPS of $1.02 beat the analyst consensus of $0.86.
The company's board declared its first-ever quarterly cash dividend of $0.25 per share, payable on December 2, 2021, to stockholders of record on November 11, 2021.
Outlook: LKQ raised FY21 EPS adjusted EPS outlook to $3.78 - $3.88 (prior view $3.55 - $3.75), above the consensus of $3.68.
Price Action: LKQ shares are trading higher by 2.93% at $55.79 in premarket on the last check Thursday.

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