Auto Parts Provider LKQ Falls Over 13% After Q1 Earnings - Here's Why

LKQ Corporation LKQ shares are trading lower on Tuesday.

The company reported first quarter adjusted earnings per share of 82 cents, missing the analyst consensus of 95 cents.

Revenue for the first quarter of 2024 was $3.7 billion, an increase of 10.6% year over year, but missed the street view of $3.765 billion.

Net income for the first quarter of 2024 was $158 million compared to $270 million for the same period of 2023. 

Cash flow from operations and free cash flow were $253 million and $187 million, respectively, for the first quarter of 2024. 

As of March 31, the balance sheet reflected a total debt of $4.3 billion, and total leverage, as defined in the credit facility, was 2.3x EBITDA.

Dividend: On April 22, the board of directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on May 30, to stockholders of record on May 16.

Outlook: The company lowered the FY24 outlook for organic revenue growth for parts and services from 3.5%-5.5% to 2.5%-4.5%.

LKQ reiterated FY24 adjusted diluted EPS of $3.90-$4.20 versus $4.03 estimate.

“We have lowered the range of our organic revenue growth guidance in recognition of the softer than expected first quarter demand and lowered our GAAP earnings per share guidance due to higher projected restructuring and transaction related expenses than prior guidance,” Rick Galloway, Senior Vice President, and Chief Financial Officer said.

Price Action: LKQ shares are trading lower by 13.3% to $42.44 at the last check Tuesday. 

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