LKQ Reports Q3 Revenue Below Street View; Tightens FY22 Forecast

LKQ Corp LKQ reported a third-quarter FY22 sales decline of 5.9% year-on-year to $3.10 billion, missing the consensus of $3.21 billion.
Gross margin for the quarter expanded 30 basis points Y/Y to 41.1%. Operating margin remained flat at 11.5%, and operating income for the quarter declined 5.3% to $358 million.
Adjusted EPS of $0.97 was in line with the analyst consensus.
LKQ held $269 million in cash and equivalents as of September 30, 2022. The operating cash flow totaled $273 million, with a free cash flow of $224 million.
The company's quarterly cash dividend of $0.275 per share is payable on December 1, 2022, to stockholders of record on November 17, 2022. This reflects a 10% increase over the prior quarterly dividend of $0.25 per share.
On October 25, 2022, the company's Board authorized a $1 billion increase to the existing share repurchase program and extended the duration through 2025.
Outlook: LKQ revised the FY22 adjusted EPS outlook to $3.85 - $3.95 from $3.85 - $4.05, against the consensus of $3.93.
The company revised the FY22 organic revenue growth outlook for parts and services to 4.75% - 5.75% from 4.5% - 6.5%.
Price Action: LKQ shares traded higher by 4.64% at $55.91 on the last check Thursday.
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