Karooooo (NASDAQ:KARO) Issues FY 2027 Earnings Guidance

Key Points

• Karooooo issued FY 2027 EPS guidance of $2.350–$2.440, broadly in line with the analyst consensus estimate of $2.410.
• Shares fell to $61.47 during Wednesday trading, while analysts maintained a “Moderate Buy” consensus and an average price target of $73.50.
• Cartrack continues to show strong operating momentum, with subscription revenue up 20% and net subscriber additions rising 34% to a record 94,516; however, insiders sold $17.8 million of stock over the past quarter.

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

Karooooo Price Performance

Shares of KARO traded down $1.18 during mid-day trading on Wednesday, hitting $61.47. The company's stock had a trading volume of 90,783 shares, compared to its average volume of 80,113. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 0.15. The firm has a 50-day simple moving average of $63.45 and a 200 day simple moving average of $56.50. The firm has a market capitalization of $1.90 billion, a P/E ratio of 29.41 and a beta of 0.89. Karooooo has a 1-year low of $41.25 and a 1-year high of $68.80.

Analysts Set New Price Targets

Several analysts recently commented on KARO shares. UBS Group reiterated a "buy" rating and issued a $75.00 price objective on shares of Karooooo in a research note on Thursday, July 16th. Weiss Ratings restated a "buy (b-)" rating on shares of Karooooo in a report on Tuesday. Wall Street Zen raised Karooooo from a "hold" rating to a "buy" rating in a report on Monday, August 17th. Zacks Research downgraded Karooooo from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 5th. Finally, Needham & Company LLC boosted their target price on Karooooo from $60.00 to $70.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $73.50.

Insider Activity at Karooooo

In related news, CEO Isaias Calisto sold 6,202 shares of Karooooo stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $63.50, for a total transaction of $393,827.00. Following the completion of the sale, the chief executive officer owned 17,640,700 shares in the company, valued at approximately $1,120,184,450. This trade represents a 0.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 277,617 shares of company stock worth $17,840,247 over the last quarter. 74.73% of the stock is owned by company insiders.

More Karooooo News

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

About Karooooo

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.

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