Keep Your Eyes on This Stock Alert: LKQ Corporation (NASDAQ: LKQ)

On 21 Nov 2019, LKQ Corporation (NASDAQ: LKQ) spotted trading -3.65% off 52-week high price. On the other end, the stock has been noted 53.43% away from the low price over the last 52-weeks. The stock changed -0.74% to recent value of $34.89. The stock transacted 1770516 shares during most recent day however it has an average volume of 2339.02K shares. The company has 303.19M of outstanding shares and 299.54M shares were floated in the market.

LKQ Corporation (LKQ) recently stated revenue for the third quarter of 2019 of $3.15B, a raise of 0.8% as contrast to $3.12B in the third quarter of 2018. For the third quarter of 2019, parts and services organic revenue increased 2.3% (0.9% on a per day basis), and acquisition revenue growth was 0.8%, while the impact of exchange rates was (2.3%), for total parts and services revenue growth of 0.8%.

Net income1 for the third quarter of 2019 was $152M, a raise of 13% year-over-year. On an adjusted basis, net income was $189M, a raise of 6% as contrast to the $177M for the same period of 2018. Diluted earnings per sharefor the third quarter of 2019 was $0.49 as contrast to $0.42 for the same period of 2018, a raise of 17%. On an adjusted basis, diluted earnings per share for the third quarter of 2019 was $0.61, a raise of 9% as contrast to $0.56 for the same period of 2018.

Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation, stated: “Our focus on profitable revenue, margin expansion and cash conversion continued to yield positive results this quarter. Despite soft macroeconomic conditions in Europe and declining scrap prices, the Company was able to generate Section EBITDA expansion, driven by a 60-basis point improvement in our North American section. I am particularly happy with the ongoing growth in cash flows as the Company added $327M in operating cash flows this quarter.”

Cash Flow and Balance Sheet

Cash flow from operations totaled $965M on a nine-month year-to-date basis, up 85% from a year ago. Free cash flow totaled $800M, up 129% year-over-year. The Company paid down $109M of borrowings during the quarter, and as of September 30, 2019, the Company’s balance sheet reflected net debt of $3.5B. Net leverage as defined in the credit facility reduced to 2.6x EBITDA.

During the third quarter of 2019, the Company repurchased 3.9M shares of ordinary stock for a total consideration of $101M. Since initiating the share repurchase program in October 2018, the Company has repurchased 13.2M shares for a total of $352M. On October 25, 2019, the Board of Directors authorized a $500M increase to the repurchase program, raising the aggregate authorization to $1B and thus making accessible an aggregate balance of $648M for potential additional repurchases anytime through October 2022.

 Its earnings per share (EPS) expected to touch remained 1.90% for this year while earning per share for the next 5-years is expected to reach at 33.50%. LKQ has a gross margin of 38.50% and an operating margin of 6.80% while its profit margin remained 3.50% for the last 12 months.   According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 1.40% from the mean of 20 days, 7.28% from mean of 50 days SMA and performed 21.99% from mean of 200 days price. Company’s performance for the week was -0.80%, 9.30% for month and YTD performance remained 47.03%.


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