Equities Analysts Set Expectations for Karooooo Q3 Earnings

Key Points

• William Blair has revised its Q3 2026 earnings estimate for Karooooo Ltd. down to $0.43 per share, from a previous forecast of $0.46, while the consensus full-year estimate is $1.57 per share.
• Karooooo recently announced a dividend of $1.25 per share, representing a remarkable dividend yield of 220.0%.
• The stock has an average target price of $58.25 and is rated as a "Moderate Buy", with four analysts recommending a buy and two a hold.

Karooooo Ltd. (NASDAQ:KARO - Free Report) - Investment analysts at William Blair dropped their Q3 2026 earnings per share estimates for Karooooo in a research note issued to investors on Wednesday, October 15th. William Blair analyst D. Becker now anticipates that the company will earn $0.43 per share for the quarter, down from their previous forecast of $0.46. The consensus estimate for Karooooo's current full-year earnings is $1.57 per share. William Blair also issued estimates for Karooooo's Q4 2026 earnings at $0.46 EPS, FY2026 earnings at $1.84 EPS and FY2027 earnings at $2.11 EPS.

A number of other analysts have also weighed in on the company. Weiss Ratings assumed coverage on Karooooo in a research note on Thursday. They set a "hold (c+)" rating for the company. UBS Group assumed coverage on Karooooo in a research note on Friday, August 29th. They set a "buy" rating and a $60.00 price objective for the company. Zacks Research lowered Karooooo from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 11th. Raymond James Financial reissued an "outperform" rating and set a $60.00 price objective (up previously from $58.00) on shares of Karooooo in a research note on Thursday, July 24th. Finally, Wall Street Zen lowered Karooooo from a "buy" rating to a "hold" rating in a research note on Saturday. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $58.25.

Karooooo Stock Performance

NASDAQ:KARO opened at $44.80 on Monday. The firm has a market cap of $1.38 billion, a PE ratio of 25.03 and a beta of 1.09. Karooooo has a fifty-two week low of $35.88 and a fifty-two week high of $63.36. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.79 and a current ratio of 0.80. The business has a 50 day moving average price of $52.68 and a 200-day moving average price of $49.37.

Karooooo (NASDAQ:KARO - Get Free Report) last released its quarterly earnings data on Tuesday, October 14th. The company reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.01. The firm had revenue of $76.16 million during the quarter, compared to analyst estimates of $73.45 million. Karooooo had a return on equity of 31.64% and a net margin of 19.90%. Karooooo has set its FY 2026 guidance at 1.830-2.000 EPS.

Karooooo Announces Dividend

The firm also recently announced an annual dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 15th were issued a dividend of $1.25 per share. This represents a dividend yield of 220.0%. The ex-dividend date was Friday, August 15th. Karooooo's dividend payout ratio is currently 279.33%.

Hedge Funds Weigh In On Karooooo

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Telemark Asset Management LLC bought a new position in Karooooo in the second quarter worth $11,028,000. Fiera Capital Corp bought a new position in Karooooo in the second quarter worth $5,878,000. Marshall Wace LLP raised its holdings in Karooooo by 699.1% in the second 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 in the last quarter. Russell Investments Group Ltd. bought a new position in Karooooo in the second quarter worth $1,378,000. Finally, Acadian Asset Management LLC raised its holdings in Karooooo by 50.1% in the second quarter. Acadian Asset Management LLC now owns 69,705 shares of the company's stock worth $3,391,000 after purchasing an additional 23,251 shares in the last quarter.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics.

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