CHICAGO - LKQ Corporation (NASDAQ:LKQ) announced its fourth quarter earnings, surpassing analysts' expectations with an adjusted EPS of $0.84, $0.08 higher than the estimated $0.76. However, the company's revenue for the quarter was slightly below the consensus, coming in at $3.5B against an anticipated $3.51B.
The 2024 earnings guidance forecasts an adjusted EPS range of $3.90 to $4.20, below the analysts' consensus of $4.11.
The company's fourth quarter revenue represented a significant 16.6% increase compared to the same period last year, indicating a strong finish to the year. This growth was attributed to a combination of organic revenue growth, favorable foreign exchange rates, and the positive impact of acquisitions and divestitures. However, the company's net income for the quarter saw a decrease of 4.2% to $184M, and full-year net income also declined by 14.6% to $0.94B compared to the previous year.
LKQ's President and CEO Dominick Zarcone expressed pride in the team's performance amidst challenging economic conditions, citing solid organic revenue growth and improved Segment EBITDA. He also highlighted the company's strong cash flow generation. Justin Jude, Executive Vice President and Chief Operating Officer, emphasized the focus on operational excellence and productivity for 2024.
The stock's movement, with the percentage not provided, suggests investor concern over the company's future earnings potential, despite the positive earnings beat for the quarter. The market's reaction is likely driven by the lower-than-expected earnings guidance for the upcoming year.
Investors and analysts will be watching closely to see if LKQ can continue its revenue growth trajectory and achieve the operational efficiencies necessary to meet or exceed its 2024 earnings targets.
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