Karooooo (NASDAQ:KARO) Updates FY 2027 Earnings Guidance

Karooooo (NASDAQ:KARO) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 2.350-2.440 for the period, compared to the consensus earnings per share estimate of 2.240. The company issued revenue guidance of -.

Analyst Upgrades and Downgrades

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

Karooooo Stock Down 6.1%

KARO stock opened at $44.59 on Friday. Karooooo has a 12 month low of $41.25 and a 12 month high of $63.36. The firm has a market cap of $1.38 billion, a PE ratio of 24.10 and a beta of 0.92. The firm has a 50 day simple moving average of $48.89 and a 200 day simple moving average of $47.20. 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 (NASDAQ:KARO) last released its earnings results on Tuesday, April 14th. The company reported $0.45 EPS for the quarter. 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. Equities research analysts forecast that Karooooo will post 2.24 earnings per share for the current fiscal year.

Karooooo Increases Dividend

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

Key Headlines Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo guided FY 2027 EPS to ZAR 38.5 to ZAR 40, ahead of the Zacks consensus estimate, and said it is targeting 18% to 24% Cartrack subscription revenue growth, signaling confidence in continued expansion. Article Title
• Positive Sentiment: The company said Q4 Cartrack South Africa subscription revenue growth accelerated to 22% year over year, and adjusted EPS rose 3% in FY 2026, highlighting continued operating momentum. Article Title
• Positive Sentiment: Karooooo increased its annual dividend to $1.50 per share from $1.25, which may appeal to income-focused investors. Article Title
• Neutral Sentiment: Revenue for the quarter came in above expectations at $90.93 million, suggesting the top line remains healthy even as investors focus on profitability trends. Article Title
• Negative Sentiment: Karooooo reported quarterly EPS of $0.44, below the $0.51 consensus estimate, which may weigh on sentiment. Article Title
• Negative Sentiment: Management commentary pointed to a margin squeeze, indicating that growth is coming with some profitability pressure, which helps explain why the stock has been under pressure. Article Title

Institutional Trading of Karooooo

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its stake in Karooooo by 852.9% during the fourth quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock valued at $135,000 after purchasing an additional 2,644 shares during the last quarter. Quantbot Technologies LP acquired a new position in Karooooo in the 2nd quarter valued at approximately $156,000. New York State Common Retirement Fund increased its stake in Karooooo by 465.6% in the 2nd quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock valued at $160,000 after buying an additional 2,682 shares during the period. State of Tennessee Department of Treasury acquired a new position in Karooooo in the 2nd quarter valued at approximately $214,000. Finally, Squarepoint Ops LLC acquired a new position in shares of Karooooo during the 4th quarter worth $226,000.

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.