Karooooo (NASDAQ:KARO) Issues FY 2026 Earnings Guidance

Key Points

• Karooooo has issued its FY 2026 earnings guidance with EPS expectations between 1.830-2.000, surpassing the consensus estimate of 1.930.
• The company's stock rose 7.4% to $56.40 following the earnings guidance announcement, with a significant trading volume of 111,976 shares.
• Karooooo recently declared an annual dividend of $1.25 per share, resulting in a high dividend yield of 220.0%.

Karooooo (NASDAQ:KARO - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.830-2.000 for the period, compared to the consensus EPS estimate of 1.930. The company issued revenue guidance of -.

Karooooo Stock Up 7.4%

Shares of KARO stock traded up $3.89 during trading hours on Tuesday, hitting $56.40. 111,976 shares of the company were exchanged, compared to its average volume of 50,399. The business has a 50 day moving average of $52.52 and a two-hundred day moving average of $49.18. The company has a current ratio of 1.17, a quick ratio of 1.16 and a debt-to-equity ratio of 0.05. Karooooo has a 52 week low of $35.88 and a 52 week high of $63.36. The company has a market capitalization of $1.74 billion, a PE ratio of 32.79 and a beta of 1.09.

Karooooo (NASDAQ:KARO - Get Free Report) last released its earnings results 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. Karooooo had a net margin of 20.23% and a return on equity of 31.48%. Karooooo has set its FY 2026 guidance at 1.830-2.000 EPS. Analysts anticipate that Karooooo will post 1.57 earnings per share for the current fiscal year.

Karooooo Announces Dividend

The company also recently disclosed an annual dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 15th were given a $1.25 dividend. This represents a dividend yield of 220.0%. The ex-dividend date of this dividend was Friday, August 15th. Karooooo's dividend payout ratio (DPR) is 290.70%.

Analysts Set New Price Targets

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

Institutional Investors Weigh In On Karooooo

A number of institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP boosted its stake in shares of Karooooo by 699.1% in the 2nd quarter. Marshall Wace LLP now owns 55,602 shares of the company's stock valued at $2,723,000 after purchasing an additional 48,644 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Karooooo by 56.6% in the 2nd quarter. Geode Capital Management LLC now owns 29,892 shares of the company's stock valued at $1,464,000 after purchasing an additional 10,799 shares during the last quarter. Russell Investments Group Ltd. bought a new stake in shares of Karooooo in the 2nd quarter valued at $1,378,000. JPMorgan Chase & Co. boosted its stake in shares of Karooooo by 216.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 8,089 shares of the company's stock valued at $396,000 after purchasing an additional 5,529 shares during the last quarter. Finally, Walleye Capital LLC bought a new stake in shares of Karooooo in the 2nd quarter valued at $319,000.

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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