Karooooo (NASDAQ:KARO) Announces Quarterly Earnings Results

Key Points

• Karooooo reported a quarterly EPS of $0.47, exceeding the consensus estimate of $0.46 by $0.01, showcasing a strong net margin of 20.23% and a return on equity of 31.48%.
• The company announced an annual dividend of $1.25 per share, leading to a 220.0% yield, although the payout ratio is high at 290.70%.
• Despite a recent downgrade to a "hold" rating by Zacks Research, analysts generally maintain a "Moderate Buy" consensus with a target price of $58.25.

Karooooo (NASDAQ:KARO - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.01, Zacks reports. Karooooo had a net margin of 20.23% and a return on equity of 31.48%.

Karooooo Stock Performance

NASDAQ KARO traded up $3.89 on Tuesday, reaching $56.40. 110,730 shares of the company's stock traded hands, compared to its average volume of 50,359. The firm has a market cap of $1.74 billion, a price-to-earnings ratio of 32.79 and a beta of 1.09. The stock has a 50 day moving average price of $52.52 and a 200-day moving average price of $49.18. 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 0.05, a quick ratio of 1.16 and a current ratio of 1.17.

Karooooo Dividend Announcement

The firm also recently announced an annual dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 15th were given a dividend of $1.25 per share. The ex-dividend date was Friday, August 15th. This represents a yield of 220.0%. Karooooo's payout ratio is currently 290.70%.

Wall Street Analyst Weigh In

KARO has been the topic of several analyst reports. Zacks Research lowered shares of Karooooo from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 11th. Needham & Company LLC began coverage on shares of Karooooo in a research note on Wednesday, July 16th. They set a "buy" rating and a $60.00 price objective for the company. Wall Street Zen downgraded shares of Karooooo from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. UBS Group began coverage on shares of Karooooo in a research note on Friday, August 29th. They set a "buy" rating and a $60.00 price objective for the company. Finally, Raymond James Financial reiterated an "outperform" rating and set a $60.00 price objective (up from $58.00) on shares of Karooooo in a research note on Thursday, July 24th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $58.25.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Quantbot Technologies LP acquired a new position in shares of Karooooo in the second quarter worth about $156,000. New York State Common Retirement Fund raised its position in shares of Karooooo by 465.6% in the second quarter. New York State Common Retirement Fund now owns 3,258 shares of the company's stock worth $160,000 after acquiring an additional 2,682 shares during the period. State of Tennessee Department of Treasury acquired a new position in shares of Karooooo in the second quarter worth about $214,000. BNP Paribas Financial Markets raised its position in shares of Karooooo by 154.5% in the second quarter. BNP Paribas Financial Markets now owns 5,045 shares of the company's stock worth $247,000 after acquiring an additional 3,063 shares during the period. Finally, Bank of America Corp DE raised its position in shares of Karooooo by 17.2% in the second quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock worth $250,000 after acquiring an additional 750 shares during the period.

Karooooo Company Profile

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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