Karooooo (NASDAQ:KARO) Releases FY 2027 Earnings Guidance

Karooooo (NASDAQ:KARO) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 2.334-2.425 for the period, compared to the consensus EPS estimate of 2.370. The company issued revenue guidance of -.

Karooooo Stock Performance

Shares of Karooooo stock opened at $65.16 on Friday. The business’s fifty day simple moving average is $49.88 and its 200 day simple moving average is $48.72. The company has a current ratio of 1.06, a quick ratio of 1.05 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $2.01 billion, a P/E ratio of 33.08 and a beta of 0.89. Karooooo has a 12 month low of $41.25 and a 12 month high of $66.19.

Karooooo (NASDAQ:KARO) last posted its quarterly earnings results on Wednesday, July 15th. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.08. The company had revenue of $96.26 million during the quarter. Karooooo had a net margin of 17.74% and a return on equity of 33.60%. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. As a group, analysts anticipate that Karooooo will post 2.37 EPS for the current year.

Karooooo Increases Dividend

The company also recently declared 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 230.0%. This is a boost from Karooooo’s previous annual dividend of $1.25. Karooooo’s payout ratio is currently 67.57%.

Analyst Upgrades and Downgrades

KARO has been the topic of several recent research reports. Needham & Company LLC upped their price objective on shares of Karooooo from $60.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday. Weiss Ratings restated a “buy (b-)” rating on shares of Karooooo in a research note on Friday, April 24th. Roth Capital restated a “buy” rating and set a $68.00 price objective on shares of Karooooo in a research report on Thursday, May 14th. Wall Street Zen cut Karooooo from a “buy” rating to a “hold” rating in a report on Sunday, June 21st. Finally, Zacks Research raised Karooooo from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $68.25.

Key Headlines Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo reported Q1 EPS of $0.59, topping Wall Street estimates of $0.51, while revenue came in at $96.26 million. Article
• Positive Sentiment: The company said Cartrack subscription revenue accelerated 19% year over year, with record net subscriber additions and stronger ARR growth, reinforcing confidence in the business momentum. Article
• Positive Sentiment: Management also guided FY 2027 EPS to a range of 2.334 to 2.425, which supports the view that earnings growth remains intact. Article
• Positive Sentiment: Media coverage highlighted Karooooo’s record subscriber haul and strong execution, helping fuel investor enthusiasm around the stock. Article
• Neutral Sentiment: One article noted that Karooooo’s CEO quietly became a billionaire in South Africa, which is more of an ownership/wealth headline than a direct operating catalyst for the stock. Article

Institutional Trading of Karooooo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KARO. State Street Corp raised its stake in shares of Karooooo by 25.9% in the fourth quarter. State Street Corp now owns 8,738 shares of the company’s stock worth $398,000 after buying an additional 1,798 shares during the period. JPMorgan Chase & Co. raised its position in shares of Karooooo by 216.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 8,089 shares of the company’s stock valued at $396,000 after buying an additional 5,529 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in Karooooo by 22.8% during the third quarter. BNP Paribas Financial Markets now owns 6,195 shares of the company’s stock worth $354,000 after buying an additional 1,150 shares during the period. Lazard Asset Management LLC boosted its stake in shares of Karooooo by 7.5% during the 3rd quarter. Lazard Asset Management LLC now owns 6,139 shares of the company’s stock worth $351,000 after purchasing an additional 430 shares during the period. Finally, Walleye Capital LLC bought a new position in shares of Karooooo during the second quarter valued at approximately $319,000.

Karooooo Company Profile

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.