Karooooo (NASDAQ:KARO) Issues FY 2027 Earnings Guidance

Key Points

• Karooooo raised FY 2027 EPS guidance to a range of 2.334 to 2.425, slightly below the consensus estimate of 2.370. Revenue guidance was not provided in the article.
• The company also reported a strong recent quarter, with EPS of $0.59 versus the $0.51 consensus estimate and revenue of $96.26 million.
• Karooooo’s stock rose 1.2% to $58.58, while analysts remain broadly positive with an average Buy rating and a consensus price target of $63.25.

Karooooo (NASDAQ:KARO - Get Free Report) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 2.334-2.425 for the period, compared to the consensus earnings per share estimate of 2.370. The company issued revenue guidance of -.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. UBS Group decreased their price target on Karooooo from $60.00 to $55.00 and set a "buy" rating for the company in a research note on Friday, May 15th. Roth Capital reiterated a "buy" rating and set a $68.00 target price on shares of Karooooo in a research report on Thursday, May 14th. Needham & Company LLC boosted their target price on shares of Karooooo from $60.00 to $70.00 and gave the company a "buy" rating in a research note on Tuesday. Wall Street Zen cut shares of Karooooo from a "buy" rating to a "hold" rating in a report on Sunday, June 21st. Finally, Zacks Research raised shares of Karooooo from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $63.25.

Karooooo Stock Up 1.2%

NASDAQ:KARO traded up $0.68 during mid-day trading on Wednesday, reaching $58.58. The company's stock had a trading volume of 308,178 shares, compared to its average volume of 73,971. Karooooo has a 1 year low of $41.25 and a 1 year high of $60.53. The stock has a fifty day moving average of $49.43 and a 200-day moving average of $48.51. The firm has a market capitalization of $1.81 billion, a PE ratio of 31.66 and a beta of 0.89. The company has a quick ratio of 1.05, a current ratio of 1.06 and a debt-to-equity ratio of 0.17.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its earnings results on Wednesday, July 15th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.08. The company had revenue of $96.26 million for the quarter. Karooooo had a net margin of 18.07% and a return on equity of 31.26%. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. Equities research analysts forecast that Karooooo will post 2.37 earnings per share for the current year.

Karooooo Increases Dividend

The firm also recently disclosed an annual dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, July 17th will be paid a dividend of $1.50 per share. This is a boost from Karooooo's previous annual dividend of $1.25. This represents a dividend yield of 347.0%. The ex-dividend date is Friday, July 17th. Karooooo's payout ratio is 67.57%.

Institutional Trading of Karooooo

A number of hedge funds have recently bought and sold shares of KARO. Lazard Asset Management LLC lifted its position in shares of Karooooo by 7.5% during the third quarter. Lazard Asset Management LLC now owns 6,139 shares of the company's stock valued at $351,000 after buying an additional 430 shares during the last quarter. Bank of America Corp DE grew its position in shares of Karooooo by 17.2% in the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock worth $250,000 after buying an additional 750 shares during the last quarter. BNP Paribas Financial Markets grew its position in shares of Karooooo by 22.8% in the 3rd quarter. BNP Paribas Financial Markets now owns 6,195 shares of the company's stock worth $354,000 after buying an additional 1,150 shares during the last quarter. State of Tennessee Department of Treasury raised its stake in shares of Karooooo by 11.2% during the 4th quarter. State of Tennessee Department of Treasury now owns 12,347 shares of the company's stock worth $618,000 after acquiring an additional 1,242 shares in the last quarter. Finally, State Street Corp raised its stake in shares of Karooooo by 25.9% during the 4th quarter. State Street Corp now owns 8,738 shares of the company's stock worth $398,000 after acquiring an additional 1,798 shares in the last quarter.

About Karooooo

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.

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