William Blair Forecasts Karooooo's Q3 Earnings (NASDAQ:KARO)

Karooooo Ltd. (NASDAQ:KARO - Free Report) - Equities research analysts at William Blair reduced their Q3 2025 earnings per share (EPS) estimates for shares of Karooooo in a report issued on Tuesday, October 15th. William Blair analyst D. Becker now forecasts that the company will earn $0.38 per share for the quarter, down from their prior forecast of $0.39. The consensus estimate for Karooooo's current full-year earnings is $1.48 per share. William Blair also issued estimates for Karooooo's Q4 2025 earnings at $0.40 EPS, FY2025 earnings at $1.58 EPS, Q1 2026 earnings at $0.40 EPS, Q2 2026 earnings at $0.42 EPS, Q3 2026 earnings at $0.44 EPS, Q4 2026 earnings at $0.46 EPS and FY2026 earnings at $1.72 EPS.

Karooooo (NASDAQ:KARO - Get Free Report) last announced its earnings results on Thursday, July 18th. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.03. Karooooo had a return on equity of 27.88% and a net margin of 18.70%. The company had revenue of $58.29 million for the quarter, compared to analyst estimates of $58.54 million.

Separately, Morgan Stanley upped their target price on Karooooo from $31.00 to $37.00 and gave the company an "overweight" rating in a research report on Thursday, July 11th.

Karooooo Stock Up 2.6 %

Shares of KARO traded up $1.02 during trading on Thursday, reaching $39.96. The company's stock had a trading volume of 31,331 shares, compared to its average volume of 18,535. The company has a fifty day moving average of $38.43 and a two-hundred day moving average of $33.11. Karooooo has a twelve month low of $21.26 and a twelve month high of $45.99. The company has a market cap of $854.34 million, a price-to-earnings ratio of 30.66 and a beta of 1.01. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.05.

Institutional Investors Weigh In On Karooooo

Several institutional investors and hedge funds have recently made changes to their positions in the company. Jupiter Asset Management Ltd. raised its position in shares of Karooooo by 5.4% during the 2nd quarter. Jupiter Asset Management Ltd. now owns 209,097 shares of the company's stock valued at $6,001,000 after acquiring an additional 10,705 shares in the last quarter. Schwarz Dygos Wheeler Investment Advisors LLC raised its position in shares of Karooooo by 1.2% during the 2nd quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 175,349 shares of the company's stock valued at $5,138,000 after acquiring an additional 2,000 shares in the last quarter. Swedbank AB raised its position in shares of Karooooo by 26.0% during the 2nd quarter. Swedbank AB now owns 120,000 shares of the company's stock valued at $3,516,000 after acquiring an additional 24,746 shares in the last quarter. Renaissance Technologies LLC raised its position in shares of Karooooo by 23.3% during the 2nd quarter. Renaissance Technologies LLC now owns 17,757 shares of the company's stock valued at $520,000 after acquiring an additional 3,356 shares in the last quarter. Finally, Acadian Asset Management LLC raised its position in shares of Karooooo by 50.6% during the 2nd quarter. Acadian Asset Management LLC now owns 4,096 shares of the company's stock valued at $116,000 after acquiring an additional 1,377 shares in the last quarter.

Karooooo Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 14th. Investors of record on Thursday, August 8th were given a dividend of $1.08 per share. This is a positive change from Karooooo's previous quarterly dividend of $0.85. This represents a $4.32 annualized dividend and a dividend yield of 10.81%. The ex-dividend date of this dividend was Thursday, August 8th. Karooooo's dividend payout ratio is currently 340.16%.

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.