Karooooo (NASDAQ:KARO) Posts Earnings Results, Beats Expectations By $0.03 EPS

Karooooo (NASDAQ:KARO) announced its quarterly earnings results 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 net margin of 19.45% and a return on equity of 32.14%. The firm had revenue of $82.34 million during the quarter, compared to analyst estimates of $79.04 million. Karooooo updated its FY 2026 guidance to 1.876-2.049 EPS.

Karooooo Stock Down 3.2%

Shares of 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. Karooooo has a 12 month low of $35.88 and a 12 month high of $63.36. The stock has a market cap of $1.34 billion, a P/E ratio of 23.43 and a beta of 1.06. The company has a 50 day simple moving average of $45.60 and a two-hundred day simple moving average of $48.48.

Key Stories Impacting Karooooo

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.

Institutional Investors Weigh In On Karooooo

Several hedge funds and other institutional investors have recently modified their holdings of KARO. Marshall Wace LLP raised its holdings in Karooooo by 699.1% in the 2nd quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock worth $2,723,000 after purchasing an additional 48,644 shares during the period. Two Sigma Investments LP grew its holdings in Karooooo by 115.4% during the third 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 during the period. Russell Investments Group Ltd. purchased a new stake in Karooooo in the second quarter worth about $1,378,000. Raymond James Financial Inc. raised its stake in shares of Karooooo by 7,327.7% in the third quarter. Raymond James Financial Inc. now owns 27,631 shares of the company’s stock worth $1,578,000 after buying an additional 27,259 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of Karooooo by 514.8% in the third quarter. Bank of America Corp DE now owns 31,357 shares of the company’s stock worth $1,791,000 after buying an additional 26,257 shares during the period.

Analyst Ratings Changes

Several equities research analysts recently issued reports on KARO shares. Wall Street Zen upgraded shares of Karooooo from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Weiss Ratings restated a “hold (c+)” rating on shares of Karooooo in a research note on Tuesday, January 13th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $58.25.

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.