LKQ ( NASDAQ: LKQ ) stock rose ~3% on Thursday after Q3 earnings beat estimates but revenue fell short of expectations.
Q3 adjusted EPS declined -4.9% Y/Y to $0.97, but surpassed analysts expectations. Meanwhile, revenue fell -5.85% Y/Y to $3.1B.
"Our strong same day organic revenue growth and segment EBITDA margins in Wholesale - North America and Europe demonstrate our ability to serve our stakeholders in any environment," said LKQ President and CEO Dominick Zarcone.
Revenue from Parts and services segment declined -5% Y/Y to $2.91B. Wholesale - North America region revenue in Q3 were largely flat at ~$1.03B, while revenue from the Europe region fell -9.4% Y/Y to ~$1.38B.
The company noted that Parts and services organic revenue increased +4.8% Y/Y on a reported basis.
For Q3, cash flow from operations and free cash flow were $273M and $224M, respectively.
Buyback and Dividend: During Q3, the company bought back 6.8M common shares worth $343M. LKQ board also authorized a $1B increase and one-year extension to its stock repurchase program. The company also raised its quarterly dividend by 10%.
Outlook :
LKQ lowered its FY22 adjusted EPS outlook to be between $3.85 and $3.95 (prior outlook $3.85 to $4.05) consensus of $3.92.
GAAP EPS now expected between $4.12 to $4.22 (previously $4.09 to $4.29)
The company now expects organic revenue growth for parts and services to be between 4.75% and 5.75% (prior range 4.5% to 6.5%).
For further details see:
LKQ stock trades higher on Q3 earnings beat; narrows FY22 EPS outlook