Karooooo (NASDAQ:KARO) Announces Earnings Results

Karooooo (NASDAQ:KARO) announced its quarterly earnings data on Tuesday. The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.03, Zacks reports. Karooooo had a return on equity of 32.14% and a net margin of 19.45%.The firm had revenue of $82.34 million for the quarter, compared to the consensus estimate of $79.04 million. Karooooo updated its FY 2026 guidance to 1.876-2.049 EPS.

Karooooo Price Performance

KARO stock opened at $43.34 on Thursday. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 0.08. The company has a market capitalization of $1.34 billion, a P/E ratio of 23.43 and a beta of 1.06. The business has a 50 day simple moving average of $45.60 and a 200-day simple moving average of $48.48. Karooooo has a twelve month low of $35.88 and a twelve month high of $63.36.

Key Karooooo News

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Q3 results beat expectations: EPS of $0.50 topped estimates and revenue of $82.3M exceeded consensus, driven by Cartrack performance — a clear near-term earnings surprise that confirms operational strength. Read More.
• Positive Sentiment: ARR acceleration: Cartrack SaaS ARR rose ~28% year-over-year to USD 298M (22% y/y in ZAR), signaling durable subscription revenue growth and stronger recurring revenue quality. Read More.
• Positive Sentiment: Subscription and subscriber metrics strong: Reports cite ~20% subscription revenue growth and record subscriber adds — supportive for forward ARR and lifetime value assumptions. Read More.
• Neutral Sentiment: FY2026 EPS guidance provided: Management set FY26 EPS guidance of 1.876–2.049 versus a consensus reference of 1.920 — a modestly wide range that gives guidance but leaves room for interpretation. Read More.
• Neutral Sentiment: Full materials & call transcripts available: Slide deck and call transcript published for deeper review — useful for modeling subscription cadence and margin assumptions. Read More. and Read More.
• Negative Sentiment: Management flagged increased growth investments: The earnings call noted stepped-up investments to support scaling (sales, product, logistics), which can compress near-term margins and prompt cautious positioning by traders. This likely explains profit-taking despite the beat. Read More.

Analysts Set New Price Targets

Several brokerages have commented on KARO. Wall Street Zen raised shares of Karooooo from a “hold” rating to a “buy” rating in a research report on Saturday, December 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karooooo in a research note on Tuesday, January 13th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $58.25.

Institutional Trading of Karooooo

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Two Sigma Investments LP increased its holdings in shares of Karooooo by 115.4% in the 3rd quarter. Two Sigma Investments LP now owns 74,130 shares of the company’s stock valued at $4,234,000 after purchasing an additional 39,709 shares in the last quarter. Marshall Wace LLP increased its holdings in Karooooo by 699.1% in the second quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock valued at $2,723,000 after buying an additional 48,644 shares in the last quarter. First Trust Advisors LP increased its holdings in Karooooo by 15.4% in the third quarter. First Trust Advisors LP now owns 32,689 shares of the company’s stock valued at $1,867,000 after buying an additional 4,362 shares in the last quarter. Bank of America Corp DE lifted its position in shares of Karooooo by 514.8% during the 3rd quarter. Bank of America Corp DE now owns 31,357 shares of the company’s stock valued at $1,791,000 after acquiring an additional 26,257 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Karooooo by 56.6% during the 2nd quarter. Geode Capital Management LLC now owns 29,892 shares of the company’s stock worth $1,464,000 after acquiring an additional 10,799 shares in the last quarter.

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.