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CHICAGO, June 26, 2019 – Shares of LKQ Corporation (NASDAQ: LKQ) gained 0.19% to $26.27. The stock grabbed the investor’s attention and traded 2.715M shares as compared to its average daily volume of 2.65M shares. The stock’s institutional ownership stands at 95.10%.
LKQ Corporation (LKQ) recently reported record revenue for the first quarter of 2019 of $3.10B, a boost of 14% as contrast to $2.70B in the first quarter of 2018. For the first quarter, parts and services organic revenue growth was 0.1% and acquisition revenue growth was 18.3%, while the impact of exchange rates was a negative 3.2%, for total parts and services revenue growth of 15.2%. When adjusting for one fewer selling day in the quarter, organic revenue growth for parts and services was 1.3%.
Net income attributable to LKQ stockholders for the first quarter of 2019 was $98.0M, a decrease of 36% year-over-year. Diluted earnings per share attributable to LKQ stockholders for the first quarter of 2019 was $0.31 as contrast to $0.49 for the same period of 2018, a decrease of 37%. The first quarter 2019 results included non-cash impairment charges (net of tax) of $40.0M related to the Company’s equity investment in Mekonomen AB and $12.0M for net assets held for sale. These impairment charges reduced diluted earnings per share for the first quarter of 2019 by $0.17. On an adjusted basis net income attributable to LKQ stockholders was $176.0M, a boost of 4% as contrast to the $170.0M for the same period of 2018. On an adjusted basis, diluted earnings per share attributable to LKQ stockholders for the first quarter of 2019 was $0.56, a boost of 2% as contrast to $0.55 for the same period of 2018.
Cash Flow and Balance Sheet:
Cash flow from operations totaled $177.0M during the first quarter of 2019, up 22%, from a year ago. Free cash flow totaled $124.0M, up 50%, year-over-year. The Company paid down $60.0M of borrowings on its credit facilities during the quarter, and as of March 31, 2019, LKQ’s balance sheet reflected net debt of $3.90B. Net leverage as defined in the credit facility held at 2.9x EBITDA.
During the first quarter of 2019, the Company repurchased about 2.60M shares of its common stock at an average price per share of $26.66, returning about $70.0M of capital to our stockholders. Since initiating our plan in late October 2018, the Company has repurchased 4.90M shares for a total of $130.0M.
LKQ has a market value of $8.26B while its EPS was booked as $1.36 in the last 12 months. The stock has 314.35M shares outstanding. In the profitability analysis, the company has gross profit margin of 38.60% while net profit margin was 3.50%. Beta value of the company was 1.32; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.40.