William Blair Has Bullish Estimate 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) - Stock analysts at William Blair upped their Q3 2026 earnings per share estimates for Karooooo in a report released on Wednesday, July 23rd. William Blair analyst D. Becker now forecasts that the company will post earnings of $0.46 per share for the quarter, up from their prior 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.

Other analysts have also recently issued reports about the company. Raymond James Financial reiterated an "outperform" rating and issued a $60.00 price objective (up from $58.00) on shares of Karooooo in a research note on Thursday. Morgan Stanley reiterated an "overweight" rating and issued a $53.00 price objective (up from $43.00) on shares of Karooooo in a research note on Thursday, June 26th. Finally, Needham & Company LLC assumed 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.

Karooooo Trading Down 1.7%

Shares of NASDAQ KARO opened at $47.78 on Friday. Karooooo has a twelve month low of $28.04 and a twelve month high of $63.36. The company has a current ratio of 1.17, a quick ratio of 1.14 and a debt-to-equity ratio of 0.05. The stock has a fifty day simple moving average of $51.57 and a 200-day simple moving average of $46.54. The stock has a market capitalization of $1.48 billion, a PE ratio of 27.78 and a beta of 1.08.

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

Karooooo Dividend Announcement

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

Hedge Funds Weigh In On Karooooo

A number of institutional investors and hedge funds have recently modified their holdings of the company. Capricorn Fund Managers Ltd grew its stake in shares of Karooooo by 7.9% during the second quarter. Capricorn Fund Managers Ltd now owns 154,756 shares of the company's stock worth $7,580,000 after purchasing an additional 11,286 shares in the last quarter. Acadian Asset Management LLC grew its stake in shares of Karooooo by 77.9% during the first quarter. Acadian Asset Management LLC now owns 46,454 shares of the company's stock worth $1,955,000 after purchasing an additional 20,347 shares in the last quarter. State of Wyoming acquired a new position in shares of Karooooo during the first quarter worth $418,000. Credit Agricole S A grew its stake in shares of Karooooo by 95.5% during the first quarter. Credit Agricole S A now owns 14,049 shares of the company's stock worth $598,000 after purchasing an additional 6,861 shares in the last quarter. Finally, Nipun Capital L.P. acquired a new position in shares of Karooooo during the first quarter worth $242,000.

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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