LKQ Corporation (NASDAQ: LKQ) reported Q4 EPS of $0.48, $0.02 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $3 billion versus the consensus estimate of $3.01 billion.

“Looking back on 2018, I am proud of the team’s efforts to complete the Stahlgruber acquisition, produce solid organic growth across all our segments, and effectively manage working capital to allow us to produce the highest annual operating cash flow figure in the Company’s history. While I acknowledge that the 2018 results didn’t live up to our initial expectations due to operational challenges in parts of the business and economic headwinds, particularly in Europe, I believe that we are taking the necessary steps to position the Company for continued success,” stated Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “As we look forward to fiscal 2019, we will continue to execute on our productivity initiatives across each operating segment and remain focused on profitable revenue growth, margin enhancement, excellent cash conversion, and optimizing our capital allocation strategy.”

• Annual revenue growth of 22% to $11.9 billion; fourth quarter growth of 22%
• Annual organic revenue growth for parts and services of 4.4%; fourth quarter growth of 2.5%
• Operating cash flow of $711 million, up 37% compared to 2017
• Non-cash impairment charges of $97 million for the full year; $75 million recorded in the fourth quarter
• Annual net income from continuing operations attributable to LKQ stockholders decreased 10.4% to $485 million; adjusted net income increased 18.5% to $691 million
• Annual diluted EPS from continuing operations attributable to LKQ stockholders of $1.53; adjusted diluted EPS of $2.19
• Fourth quarter 2018 diluted EPS from continuing operations attributable to LKQ stockholders of $0.13; adjusted diluted EPS of $0.48
• Varun Laroyia, Executive Vice President and Chief Financial Officer, commented, “Our 2019 annual guidance reflects our emphasis on profitable revenue growth and free cash flow generation. While we expect revenue growth to moderate from past levels, we believe that our margin enhancement initiatives will boost profitability in 2019 despite headwinds from lower scrap metals prices and a strengthening dollar. The operational focus and continued momentum on active working capital management and prudent capital spending is expected to contribute to an increase in free cash flow generation.”

GUIDANCE:

LKQ Corporation sees FY2019 EPS of $2.34-$2.46, versus the consensus of $2.47.

For earnings history and earnings-related data on LKQ Corporation (LKQ) click here.