Karooooo (NASDAQ:KARO) Issues Quarterly Earnings Results

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

Karooooo Stock Up 2.5%

KARO traded up $1.13 during trading hours on Friday, reaching $45.72. 141,705 shares of the stock traded hands, compared to its average volume of 61,670. The firm’s fifty day simple moving average is $48.89 and its two-hundred day simple moving average is $47.20. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 24.92 and a beta of 0.92. Karooooo has a fifty-two week low of $41.25 and a fifty-two week high of $63.36. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.84 and a quick ratio of 0.84.

Karooooo Increases Dividend

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

Institutional Investors Weigh In On Karooooo

Large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Karooooo by 852.9% during the 4th quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock worth $135,000 after acquiring an additional 2,644 shares in the last quarter. Quantbot Technologies LP acquired a new position in Karooooo during the 2nd quarter worth $156,000. New York State Common Retirement Fund grew its holdings in Karooooo by 465.6% during the 2nd quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock worth $160,000 after acquiring an additional 2,682 shares in the last quarter. State of Tennessee Department of Treasury acquired a new position in Karooooo during the 2nd quarter worth $214,000. Finally, Squarepoint Ops LLC acquired a new position in Karooooo during the 4th quarter worth $226,000.

Analysts Set New Price Targets

KARO has been the topic of several recent analyst reports. Roth Mkm reissued a “buy” rating and set a $68.00 price objective on shares of Karooooo in a research note on Thursday. Wall Street Zen raised shares of Karooooo from a “hold” rating to a “buy” rating in a research note on Saturday, April 11th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Karooooo in a research note on Friday, April 24th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Karooooo presently has an average rating of “Moderate Buy” and an average target price of $60.20.

Key Headlines Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo reported record fourth-quarter and full-year FY 2026 results, highlighted by accelerating subscription revenue growth, including 22% year-over-year growth in Cartrack South Africa subscription revenue and stronger SaaS ARR expansion. Karooooo Delivers Accelerating Subscription Revenue Growth and Strong Cash Flow in FY 2026
• Positive Sentiment: The company raised FY 2027 EPS guidance to ZAR 38.5 to ZAR 40, above prior expectations, signaling confidence in continued earnings growth. Karooooo forecasts FY 2027 EPS of ZAR 38.5 to ZAR 40 while targeting 18% to 24% Cartrack subscription revenue growth
• Positive Sentiment: Karooooo announced an annual dividend of $1.50 per share, a 20% increase from the prior $1.25 payout, which may support investor sentiment toward shareholder returns.
• Neutral Sentiment: Q4 earnings came in at $0.44 per share, below the $0.51 consensus, even though revenue of $90.93 million slightly beat estimates; the miss likely tempered enthusiasm. Karooooo earnings report and conference call
• Negative Sentiment: Management also noted margin pressure, which suggests profitability may be under some strain even as the business continues to grow. Karooooo Ltd. Bets on Growth Amid Margin Squeeze

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.