Karooooo (NASDAQ:KARO) Posts Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Karooooo (NASDAQ:KARO) announced its quarterly earnings data on Wednesday. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.07), Zacks reports. Karooooo had a net margin of 18.07% and a return on equity of 31.60%. The business had revenue of $90.93 million during the quarter, compared to analyst estimates of $89.42 million. Karooooo updated its FY 2027 guidance to 2.350-2.440 EPS.

Karooooo Stock Down 6.1%

Karooooo stock opened at $44.59 on Friday. The firm has a 50 day moving average price of $48.89 and a 200-day moving average price of $47.20. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.06. Karooooo has a twelve month low of $41.25 and a twelve month high of $63.36. The company has a market capitalization of $1.38 billion, a P/E ratio of 24.10 and a beta of 0.92.

Karooooo Increases Dividend

The business also recently announced an annual dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, July 17th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a dividend yield of 347.0%. This is an increase from Karooooo’s previous annual dividend of $1.25. Karooooo’s payout ratio is currently 67.57%.

Analyst Ratings Changes

A number of research firms recently weighed in on KARO. Wall Street Zen upgraded shares of Karooooo from a “hold” rating to a “buy” rating in a report on Saturday, April 11th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Karooooo in a research note on Friday, April 24th. Finally, Roth Mkm reissued a “buy” rating and issued a $68.00 price objective on shares of Karooooo in a research note on Thursday. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $60.20.

Hedge Funds Weigh In On Karooooo

Several institutional investors have recently bought and sold shares of the company. State of Tennessee Department of Treasury increased its position in Karooooo by 11.2% in the fourth quarter. State of Tennessee Department of Treasury now owns 12,347 shares of the company’s stock worth $618,000 after buying an additional 1,242 shares during the last quarter. Russell Investments Group Ltd. purchased a new position in shares of Karooooo during the 4th quarter valued at $623,000. Royal Bank of Canada lifted its position in shares of Karooooo by 852.9% during the 4th quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock valued at $135,000 after buying an additional 2,644 shares during the last quarter. Squarepoint Ops LLC bought a new position in shares of Karooooo during the 4th quarter worth $226,000. Finally, Dodge & Cox purchased a new stake in Karooooo in the 4th quarter worth about $1,111,000.

Key Stories Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo raised its annual dividend to $1.50 per share from $1.25, a 20% increase, signaling confidence in cash generation and shareholder returns.
• Positive Sentiment: The company said FY 2027 EPS guidance is ZAR 38.5 to ZAR 40.0, above prior expectations, and it is targeting 18% to 24% Cartrack subscription revenue growth, which supports a growth case for the business. Article Title
• Positive Sentiment: FY 2026 results showed record subscription revenue growth, with Cartrack South Africa subscription revenue up 22% year over year in Q4 and SaaS ARR rising 18% year over year, indicating solid underlying demand. Article Title
• Neutral Sentiment: Fourth-quarter revenue of $90.93 million beat estimates, but adjusted earnings were below expectations, creating a mixed read on near-term profitability. Article Title
• Negative Sentiment: Karooooo reported Q4 EPS of $0.44 to $0.45, missing consensus estimates of $0.51, which likely pressured the stock despite the strong revenue and guidance figures. Article Title

About Karooooo

Karooooo Ltd is a global provider of telematics software-as-a-service solutions for vehicle and fleet management. Through its flagship platform, the company delivers real-time GPS tracking, stolen vehicle recovery and driver behaviour analytics, enabling commercial fleets and automotive insurers to optimise operations, increase safety and reduce costs.

Karooooo’s SaaS platform integrates proprietary hardware devices with cloud-based analytics and mobile applications. Customers gain access to live vehicle location data, engine diagnostics, route planning tools and customizable reporting dashboards.