LKQ Corporation (NASDAQ:LKQ) released the earnings results from the third quarter before opening bell this morning, posting adjusted earnings of 31 cents per share on $1.72 billion in revenue, a new quarterly record and a 32.6% increase year over year.
Analysts had been looking for earnings of 31 cents per share on $1.68 billion in revenue. In the same quarter last year, revenue was $1.3 billion, while adjusted earnings were 25 cents per share.
Key metrics from LKQ’s earnings report
Diluted earnings were 30 cents per share, an increase from last year’s 24 cents per share. Adjusted earnings exclude charges from restructuring, acquisitions and changes in fair value of some liabilities. Net income grew 24.6% to $91.5 million.
“We are pleased with our financial and operational performance in the quarter,” said LKQ President and CEO Robert Wagman in a statement this morning. “We are particularly pleased to see the Company deliver organic revenue growth for parts and services of 8.9% and our North American segment report strong organic revenue growth of 6.7% for parts and services.”
During the third quarter, LKQ’s European divisions opened 15 Euro Car Parts branches, bringing the total number to 179 in the U.K. The company also acquired a salvage yard in Nova Scotia, a heavy duty truck salvage yard in Illinoi and a Netherlands-based automotive after-market products distributor.
LKQ updates full year guidance
As part of this morning’s earnings report, LKQ Corporation also updated its guidance. Expectations for organic revenue growth remain at between 8% and 10%. The company lowered the high end of its adjusted net income guidance. The previous guidance was for between $405 million and $430 million, while the new guidance was for between $405 million and $417 million.
LKQ also lowered the high end of its guidance for adjusted earnings per share. The old range was between $1.32 and $1.40 per share, while the new guidance was for between $1.32 and $1.36 per share. The company continues to expect to see about $375 million in cash flow from operations and spend $110 million and $140 million on capital expenditures for the year.