Karooooo (NASDAQ:KARO) Releases FY 2027 Earnings Guidance

Karooooo (NASDAQ:KARO) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 2.350-2.440 for the period, compared to the consensus earnings per share estimate of 2.410.

Karooooo Trading Down 1.9%

Shares of KARO stock traded down $1.18 during mid-day trading on Wednesday, hitting $61.47. 90,783 shares of the company’s stock were exchanged, compared to its average volume of 80,113. The stock has a market cap of $1.90 billion, a price-to-earnings ratio of 29.41 and a beta of 0.89. The company has a quick ratio of 1.01, a current ratio of 1.02 and a debt-to-equity ratio of 0.15. Karooooo has a fifty-two week low of $41.25 and a fifty-two week high of $68.80. The stock has a 50-day simple moving average of $63.45 and a two-hundred day simple moving average of $56.50.

Wall Street Analysts Forecast Growth

KARO has been the subject of several research reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Karooooo in a research note on Tuesday. Zacks Research cut shares of Karooooo from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Raymond James Financial raised their target price on Karooooo from $60.00 to $75.00 and gave the company an “outperform” rating in a research note on Friday, July 17th. Wall Street Zen raised Karooooo from a “hold” rating to a “buy” rating in a research report on Monday, August 17th. Finally, UBS Group restated a “buy” rating and set a $75.00 price objective on shares of Karooooo in a report on Thursday, July 16th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $73.50.

Insiders Place Their Bets

In other news, CEO Isaias Calisto sold 33,833 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $66.14, for a total value of $2,237,714.62. Following the completion of the sale, the chief executive officer owned 17,714,186 shares of the company’s stock, valued at approximately $1,171,616,262.04. The trade was a 0.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last ninety days, insiders have sold 277,617 shares of company stock worth $17,840,247. 74.73% of the stock is owned by company insiders.

Key Headlines Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Cartrack subscription revenue increased 20% in the fiscal second quarter, while net subscriber additions rose 34% to a record 94,516. The customer base is approaching 3 million, indicating continued demand for Karooooo’s vehicle-tracking and software services. Karooooo: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Karooooo reported quarterly revenue of $101.83 million, above analyst expectations of $98.83 million. Other reports highlighted 25% growth in constant-currency terms and an 18% increase in profit, reinforcing the company’s strong underlying operating momentum. Vehicle Tracker Karooooo Profit Rises 18%
• Positive Sentiment: Management emphasized strong software-as-a-service momentum on the earnings call. Investment in customer acquisition appears to be driving record subscriber additions and could support recurring revenue growth over the longer term. Karooooo Earnings Call Highlights Strong SaaS Momentum
• Neutral Sentiment: Reported earnings were described differently by data providers: Karooooo posted approximately $0.57-$0.58 in adjusted quarterly EPS, ranging from matching consensus to narrowly missing the $0.59 estimate. The discrepancy reflects differing earnings definitions, but the headline result was not a clear upside surprise. Karooooo Ltd. Q2 Earnings Match Estimates
• Negative Sentiment: The company’s $0.58 EPS came in slightly below the broader consensus estimate of $0.59. The modest earnings miss prompted selling, as investors weighed near-term profitability against management’s customer-acquisition spending and longer-term SaaS expansion. Karooooo Limited Shares Fall on 2Q Earnings Miss

Karooooo Company Profile

Karooooo Ltd. is a Singapore-based technology company that provides connected-vehicle and mobility solutions through its Cartrack business. Its cloud-based platform uses telematics, vehicle tracking and data analytics to help businesses monitor vehicles and assets, improve fleet operations, manage driver behavior and enhance safety.

The company’s products and services include real-time vehicle location and monitoring, fleet management, stolen-vehicle recovery, vehicle and asset tracking, maintenance and fuel-management tools, and workflow solutions.