LKQ Q1 Earnings Top Estimates; Raises FY22 Outlook

LKQ Corp LKQ reported first-quarter FY22 sales growth of 5.6% year-on-year to $3.35 billion, marginally above the consensus of $3.30 billion.
Revenue in North America rose 14.2% Y/Y, and Europe increased 1.8%.
Gross margin for the quarter compressed 30 basis points Y/Y to 40.5%. Operating margin contracted 60 basis points to 11.1%, and operating income for the quarter remained flat at $371 million.
Adjusted EPS of $1.00 beat the analyst consensus of $0.92.
LKQ held $327 million in cash and equivalents as of March 31, 2022. The operating cash flow totaled $409 million with a free cash flow of $350 million.
The company's quarterly cash dividend of $0.25 per share is payable on June 2, 2022, to stockholders of record on May 19, 2022.
Outlook: LKQ raised the FY22 adjusted EPS outlook to $3.80 - $4.10 from $3.72 - $4.02, against the consensus of $3.92.
The company raised FY22 organic revenue growth outlook for part and services to 4.5% - 6.5% from 3.0% - 5.0%.
Price Action: LKQ shares traded higher by 1.86% at $50.40 on the last check Thursday.

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