Karooooo (NASDAQ:KARO) Shares Gap Up After Better-Than-Expected Earnings

Karooooo Ltd. (NASDAQ:KARO) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $44.76, but opened at $48.34. Karooooo shares last traded at $45.2010, with a volume of 17,055 shares traded.

The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.03. The company had revenue of $82.34 million during the quarter, compared to analysts’ expectations of $79.04 million. Karooooo had a return on equity of 32.14% and a net margin of 19.45%.Karooooo has set its FY 2026 guidance at 1.876-2.049 EPS.

Karooooo News Summary

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Q3 results beat expectations: EPS of $0.50 topped estimates and revenue of $82.3M exceeded consensus, driven by Cartrack performance — a clear near-term earnings surprise that confirms operational strength. Read More.
• Positive Sentiment: ARR acceleration: Cartrack SaaS ARR rose ~28% year-over-year to USD 298M (22% y/y in ZAR), signaling durable subscription revenue growth and stronger recurring revenue quality. Read More.
• Positive Sentiment: Subscription and subscriber metrics strong: Reports cite ~20% subscription revenue growth and record subscriber adds — supportive for forward ARR and lifetime value assumptions. Read More.
• Neutral Sentiment: FY2026 EPS guidance provided: Management set FY26 EPS guidance of 1.876–2.049 versus a consensus reference of 1.920 — a modestly wide range that gives guidance but leaves room for interpretation. Read More.
• Neutral Sentiment: Full materials & call transcripts available: Slide deck and call transcript published for deeper review — useful for modeling subscription cadence and margin assumptions. Read More. and Read More.
• Negative Sentiment: Management flagged increased growth investments: The earnings call noted stepped-up investments to support scaling (sales, product, logistics), which can compress near-term margins and prompt cautious positioning by traders. This likely explains profit-taking despite the beat. Read More.

Wall Street Analyst Weigh In

Several research firms have weighed in on KARO. Wall Street Zen upgraded Karooooo from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karooooo in a report on Tuesday, January 13th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, Karooooo presently has an average rating of “Moderate Buy” and an average target price of $58.25.

Institutional Trading of Karooooo

A number of institutional investors have recently modified their holdings of KARO. Jones Financial Companies Lllp grew its holdings in shares of Karooooo by 159.4% during the third quarter. Jones Financial Companies Lllp now owns 804 shares of the company’s stock worth $46,000 after buying an additional 494 shares in the last quarter. Murphy & Mullick Capital Management Corp boosted its position in Karooooo by 260.0% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 900 shares of the company’s stock worth $51,000 after acquiring an additional 650 shares during the last quarter. Copeland Capital Management LLC bought a new position in shares of Karooooo during the 3rd quarter worth approximately $76,000. Quantbot Technologies LP acquired a new stake in shares of Karooooo in the second quarter valued at approximately $156,000. Finally, New York State Common Retirement Fund lifted 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 purchasing an additional 2,682 shares in the last quarter.

Karooooo Price Performance

The firm has a market cap of $1.34 billion, a price-to-earnings ratio of 23.43 and a beta of 1.06. The company’s fifty day moving average is $45.60 and its 200 day moving average is $48.48. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 0.08.

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.