LKQ Corporation LKQ shares are trading higher in the premarket session on Thursday.
The company reported fourth-quarter adjusted earnings per share of 80 cents, beating the street view of 74 cents. Quarterly sales of $3.357 billion (down 4.1% year over year) missed the analyst consensus estimate of $3.398 billion.
Gross margin in the quarter under review contracted to 39.5% from 40% in the year-ago period.
Total Segment EBITDA margin in the quarter under review expanded to 12.1% from 11.3% in the year-ago period.
The Europe segment achieved an EBITDA margin of 10.1% in the quarter, which is a record for the segment in the fourth quarter, the company said.
“This was the third consecutive quarter the Europe segment attained double-digit EBITDA margins, and the Europe segment achieved its highest level of EBITDA dollars for a full year in 2024,” stated Justin Jude, President and Chief Executive Officer.
LKQ exited the quarter with cash and equivalents worth $234 million, compared with $299 million in the year-ago period.
Inventories expanded to $3.220 billion at the end of the quarter, up from $3.121 billion a year ago.
The company’s long-term obligations (excluding current portion) at the end of the fourth quarter expanded to $4.127 billion from $3.655 billion.
On February 18, 2025, the Board declared a quarterly cash dividend of $0.30 per share of common stock, payable on March 27, 2025, to stockholders of record at the close of business on March 13, 2025.
Outlook: LKQ sees FY25 adjusted EPS of $3.40 – $3.70 versus the $3.61 estimate.
Organic revenue growth for parts and services is expected to grow in the range of 0% – 2%.
Price Action: LKQ shares are trading higher by 4.06% at $41.00 premarket at last check Thursday.
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