LKQ Corp. Lowers Annual Earnings Guidance - Quick Facts

(RTTNews) - LKQ Corp. (LKQ) announced, for 2018, the company now expects adjusted diluted EPS from continuing operations to stockholders in a range of $2.19 to $2.25, revised from prior guidance range of $2.25 to $2.33. Organic revenue growth for parts & services are now projected in a range of 4.5% to 5.0%, updated from prior outlook range of 4.5% to 5.5%.

Varun Laroyia, CFO, said, "The updated guidance reflects the reality that our initiatives to deliver sustained growth and increased profit margins are working, though offset by the continued cost headwinds impacting our industry. While the initial results of our actions are positive, we believe that these cost pressures will not abate in the near term and have adjusted our guidance to address the economic headwinds related to freight, fuel and wage inflation and declining scrap prices. We are committed to protecting our margins, driving higher levels of free-cash flow conversion, and believe our actions will position us well for achieving higher levels of sustainable and profitable growth in the future."

For the third quarter of 2018, on an adjusted basis, diluted earnings per share attributable to LKQ stockholders was $0.56, an increase of 24.4% as compared to $0.45 for the same period of 2017. Parts and services organic revenue growth was 4.3%, for the quarter.