LKQ Corporation Reports Expected Earnings for Second Quarter

LKQ Corporation (LKQ), parent company of PGW Auto Glass, had a successful second quarter, according to the company’s latest financial results released today. The company reported a 7.2% or $3.25 billion increase in its revenue. This is compared to its $3 billion revenue for last year’s second quarter.

“We continued to make progress on our key productivity initiatives during the second quarter, which are having a positive impact on our financial and operational performance. We delivered this performance notwithstanding difficult revenue growth comparisons across all of our operating segments, a soft collision environment in the U.S. and the ongoing macroeconomic challenges and the impact of one less selling day in Europe, said Dominick Zarcone, LKQ president and CEO.

During its second quarter the company also repurchased approximately 4.4 million shares of its common stock, which according to the company, returned approximately $120 million of capital to its stockholders, as well as paying down some of its debt. Another notable point was the company’s operating cash flow, it totaled $461 million during the quarter. This shows an increase of 151%, when directly compared to 20018’s second quarter results.

Other notable highlights from LKQ’s financial report include:

  • Its free cash flow totaled $413 million, which is up 217%, year-over-year;
  • Parts and services’ organic revenue declined 2.1%;
  • Net income from continuing operations attributable to LKQ stockholders of $150 million (down 4%); and
  • Updating the 2019 annual guidance report.

“Our operational focus on active working capital management and prudent capital spending enabled us to increase our 2019 annual guidance for free cash flow. However, our revised guidance also reflects the soft macroeconomic environment we are facing in Europe,” said Varun Laroyia, executive vice president and chief financial officer.

The chart below shows some of the updates LKQ has made.

2019 Updated Guidance2019 Previous Guidance
Organic revenue growth for parts & services0.5% to 2.0%2.0% to 4.0%
Net income attributable to LKQ stockholders$540 million to $565 million$586 million to $625 million
Adjusted net income attributable to LKQ stockholders$718 million to $743 million$732 million to $771 million
Cash flows from operations$800 million to $875 million$775 million to $850 million
Capital expenditures$225 million to $275 million$250 million to $300 million


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