William Blair Has Bullish Forecast for Karooooo Q3 Earnings

Key Points

• William Blair increased its Q3 2026 earnings per share estimate for Karooooo from $0.45 to $0.46, while also predicting Q4 earnings of $0.49 per share.
• Several analysts, including Raymond James and Morgan Stanley, have issued positive ratings and raised price targets for Karooooo's stock, with projected prices reaching **$60.00** and **$53.00**, respectively.
• Karooooo recently declared a dividend of $1.25 per share, which will yield 2.2% for shareholders of record, but the dividend payout ratio stands at 62.79%.

Karooooo Ltd. (NASDAQ:KARO - Free Report) - Equities researchers at William Blair upped their Q3 2026 earnings estimates for shares of Karooooo in a report issued on Wednesday, July 23rd. William Blair analyst D. Becker now anticipates that the company will post earnings per share of $0.46 for the quarter, up from their previous estimate of $0.45. 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 $0.49 EPS, FY2026 earnings at $1.86 EPS and FY2027 earnings at $2.16 EPS.

KARO has been the topic of a number of other reports. Needham & Company LLC began coverage on Karooooo in a research note on Wednesday, July 16th. They issued a "buy" rating and a $60.00 price objective on the stock. Raymond James Financial reiterated an "outperform" rating and set a $60.00 price target (up from $58.00) on shares of Karooooo in a research report on Thursday, July 24th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $53.00 price target (up from $43.00) on shares of Karooooo in a research report on Thursday, June 26th.

Karooooo Stock Performance

Shares of NASDAQ:KARO traded down $1.41 during midday trading on Friday, reaching $46.78. The company had a trading volume of 27,961 shares, compared to its average volume of 50,004. The company's 50 day moving average price is $51.30 and its 200 day moving average price is $46.50. The company has a current ratio of 1.17, a quick ratio of 1.16 and a debt-to-equity ratio of 0.05. The stock has a market cap of $1.44 billion, a P/E ratio of 27.19 and a beta of 1.08. Karooooo has a 52-week low of $31.59 and a 52-week high of $63.36.

Karooooo (NASDAQ:KARO - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.02. The business had revenue of $70.49 million during the quarter, compared to the consensus estimate of $1.25 billion. Karooooo had a net margin of 20.23% and a return on equity of 31.48%.

Karooooo Announces Dividend

The business also recently declared a -- dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 15th will be issued a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a dividend yield of 2.2%. Karooooo's payout ratio is presently 62.79%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. BNP Paribas Financial Markets purchased a new position in shares of Karooooo during the 4th quarter valued at about $210,000. Lazard Asset Management LLC increased its stake in Karooooo by 17.5% in the 4th quarter. Lazard Asset Management LLC now owns 4,961 shares of the company's stock worth $223,000 after acquiring an additional 740 shares during the last quarter. Nipun Capital L.P. bought a new stake in Karooooo in the 1st quarter worth approximately $242,000. Northern Trust Corp bought a new stake in Karooooo in the 4th quarter worth approximately $340,000. Finally, JPMorgan Chase & Co. increased its stake in Karooooo by 1,727.0% in the 4th quarter. JPMorgan Chase & Co. now owns 8,934 shares of the company's stock worth $403,000 after acquiring an additional 8,445 shares during the last quarter.

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.