LKQ inventory trades greater on Q3 earnings beat; narrows FY22 EPS outlook

LKQ (NASDAQ:LKQ) inventory rose ~3% on Thursday after Q3 earnings beat estimates however income fell in need of expectations.

Q3 adjusted EPS declined -4.9% Y/Y to $0.97, however surpassed analysts expectations. In the meantime, income fell -5.85% Y/Y to $3.1B.

“Our robust identical day natural income progress and section EBITDA margins in Wholesale – North America and Europe display our capability to serve our stakeholders in any setting,” stated LKQ President and CEO Dominick Zarcone.

Income from Elements and companies section declined -5% Y/Y to $2.91B. Wholesale – North America area income in Q3 had been largely flat at ~$1.03B, whereas income from the Europe area fell -9.4% Y/Y to ~$1.38B.

The corporate famous that Elements and companies natural income elevated +4.8% Y/Y on a reported foundation.

For Q3, money stream from operations and free money stream had been $273M and $224M, respectively.

Buyback and Dividend: Throughout Q3, the corporate purchased again 6.8M frequent shares value $343M. LKQ board additionally approved a $1B enhance and one-year extension to its inventory repurchase program. The corporate additionally 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 anticipated between $4.12 to $4.22 (beforehand $4.09 to $4.29)

The corporate now expects natural income progress for components and companies to be between 4.75% and 5.75% (prior vary 4.5% to six.5%).