William Blair Has Negative Outlook for Karooooo Q3 Earnings

Karooooo Ltd. (NASDAQ:KARO) – William Blair reduced their Q3 2025 earnings estimates for Karooooo in a research report issued to clients and investors on Tuesday, October 15th. William Blair analyst D. Becker now expects that the company will earn $0.38 per share for the quarter, down from their previous 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.

Separately, Morgan Stanley boosted their price objective on Karooooo from $31.00 to $37.00 and gave the stock an “overweight” rating in a research report on Thursday, July 11th.

Karooooo Trading Up 2.6 %

Karooooo stock opened at $39.96 on Thursday. The firm has a 50-day moving average price of $38.51 and a two-hundred day moving average price of $33.16. Karooooo has a 52-week low of $21.26 and a 52-week high of $45.99. The firm has a market capitalization of $854.34 million, a price-to-earnings ratio of 31.46 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.

Karooooo (NASDAQ:KARO) last released its quarterly earnings results on Thursday, July 18th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.36 by $0.03. The business had revenue of $58.29 million during the quarter, compared to analyst estimates of $58.54 million. Karooooo had a net margin of 18.70% and a return on equity of 27.88%.

Hedge Funds Weigh In On Karooooo

Several hedge funds have recently modified their holdings of the company. Acadian Asset Management LLC bought a new position in Karooooo during the first quarter valued at about $67,000. Renaissance Technologies LLC raised its position in Karooooo by 23.3% in the second quarter. Renaissance Technologies LLC now owns 17,757 shares of the company’s stock worth $520,000 after acquiring an additional 3,356 shares in the last quarter. Swedbank AB acquired a new stake in Karooooo in the 1st quarter valued at about $2,387,000. Jupiter Asset Management Ltd. boosted its position in shares of Karooooo by 2.6% during the 1st quarter. Jupiter Asset Management Ltd. now owns 198,392 shares of the company’s stock valued at $4,972,000 after purchasing an additional 5,002 shares in the last quarter. Finally, Schwarz Dygos Wheeler Investment Advisors LLC grew its stake in shares of Karooooo by 1.2% in the 2nd quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 175,349 shares of the company’s stock worth $5,138,000 after purchasing an additional 2,000 shares during the last quarter.

Karooooo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 14th. Investors of record on Thursday, August 8th were issued a dividend of $1.08 per share. This is a boost from Karooooo’s previous quarterly dividend of $0.85. The ex-dividend date was Thursday, August 8th. This represents a $4.32 annualized dividend and a yield of 10.81%. Karooooo’s payout ratio is presently 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.