July 25, 2024 11:32 GMT
CONSUMER CYCLICALS: LKQ (LKQ Baa3/BBB-/BBB-[P]): 2Q24 Results
CONSUMER CYCLICALS
Slightly credit negative.
- Revenue missed by 4%. Organic growth was -3%, with +1.5% expected; North America was particularly weak, driven by lower repairable claims. They link that to weak macro, which is unclear to us.
- Adj. EBITDA is in-line with consensus, with margins slightly ahead.
- FCF was relatively weak at $133mn, expected around $187mn. Leverage is reported at 2.3x.
- FY organic growth outlook downgraded materially from 2.5-4.5% to (1.25)-0.25%. FCF outlook cut by 15% implying a similar cut to EBITDA.
- The new CEO asserted commitment to IG ratings.
- https://events.q4inc.com/attendee/336942447
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