SINGAPORE--(BUSINESS WIRE)--Karooooo (KARO), the global provider of mobility and operational intelligence solutions and parent company of Cartrack, today announced that Richard Schubert, Group Chief Operating Officer, and Paul Bieber, Vice President of Investor Relations and Strategic Finance, will participate in the Raymond James 27th Annual Institutional Investor Conference in Orlando, FL on Tuesday, March 4th at 4:00 p.m. ET. A live webcast of the presentation will be available in the Events. ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Karooooo Ltd. (KARO) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 15.1%, with projected EPS growth of 26.1% this year, surpassing the industry average of 20% [4] Group 2: Financial Metrics - Karooooo's asset utilization ratio is 1.02, indicating it generates $1.02 in sales for every dollar in assets, compared to the industry average of 0.6, showcasing higher efficiency [5] - The company's sales are expected to grow by 32.8% this year, significantly higher than the industry average of 12% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Karooooo, with the Zacks Consensus Estimate for the current year increasing by 7% over the past month [8] - The combination of a Zacks Rank 2 and a Growth Score of A positions Karooooo as a potential outperformer and a solid choice for growth investors [10]

Core Viewpoint - Karooooo Ltd. (KARO) has shown a 6.2% increase in stock price over the past four weeks, with a mean price target of $60.25 indicating a potential upside of 25.7% from the current price of $47.92 [1] Price Targets - The average price target consists of four estimates ranging from $60.00 to $61.00, with a standard deviation of $0.5, suggesting a relatively high agreement among analysts [2] - The lowest estimate indicates a 25.2% increase, while the highest suggests a 27.3% upside [2] Analyst Consensus and Earnings Estimates - Analysts have shown increasing optimism regarding KARO's earnings prospects, as evidenced by a strong agreement in revising EPS estimates higher [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 7%, with two estimates moving higher and no negative revisions [12] - KARO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as analysts' ability to set accurate targets has been questioned [3][10] - Price targets can be influenced by analysts' business incentives, leading to potentially inflated estimates [8] - A low standard deviation among price targets indicates a high degree of agreement among analysts, which can serve as a starting point for further research [9]

Core Insights - Cartrack has partnered with Schmitz Cargobull to enhance its mobility solutions by integrating TrailerConnect® telematics data into its platform, providing transport operators with real-time visibility and control over fleet operations [1] Company Overview - Cartrack is a leading global mobility solutions provider and a subsidiary of Karooooo Limited, listed on NASDAQ under the ticker KARO [1] - Schmitz Cargobull is recognized as Europe's premier manufacturer of semi-trailers and is noted for its innovations in digital trailer connectivity [1]

Core Insights - Karooooo Ltd. has been recognized as one of Singapore's Fastest-Growing Companies for 2026, highlighting its strong revenue growth [1] Company Performance - The ranking is compiled by Statista in collaboration with The Straits Times, focusing on companies headquartered in Singapore [1] - The list includes 100 companies that have demonstrated significant revenue growth over the past three years [1]

Core Viewpoint - The article highlights Karooooo Ltd. (KARO) as a promising growth stock, supported by its strong growth metrics and favorable Zacks Rank, making it an attractive option for growth investors [2][9]. Earnings Growth - Karooooo has a historical EPS growth rate of 15.1%, with projected EPS growth of 26.1% for the current year, surpassing the industry average of 24.1% [4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.02, indicating it generates $1.02 in sales for every dollar in assets, significantly higher than the industry average of 0.59 [5]. Sales Growth - Karooooo's sales are expected to grow by 32.8% this year, compared to the industry average of 13%, showcasing its strong sales growth potential [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Karooooo, with the Zacks Consensus Estimate for the current year increasing by 7% over the past month [7]. Overall Positioning - With a Growth Score of A and a Zacks Rank of 2, Karooooo is well-positioned for outperformance, making it a compelling choice for growth investors [9].

Core Viewpoint - Investors are encouraged to consider Karooooo Ltd. (KARO) due to solid improvements in earnings estimates and positive short-term price momentum [1] Earnings Estimates - Analysts have shown growing optimism regarding Karooooo's earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2] - The consensus earnings estimate for the current quarter is $0.52 per share, reflecting an 18.2% year-over-year increase, with a 6.12% rise in the Zacks Consensus Estimate over the last 30 days [5] - For the full year, the expected earnings per share is $2.06, indicating a 26.4% increase from the previous year, with similar positive revisions noted [6] Zacks Rank - Karooooo has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong potential for outperformance compared to the S&P 500 [7] - Historically, Zacks 1 (Strong Buy) and 2 (Buy) ranked stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][7] Stock Performance - Over the past four weeks, Karooooo shares have increased by 5.2%, indicating investor confidence in the company's earnings growth prospects [8]

Core Viewpoint - Karooooo Ltd. (KARO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Karooooo's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions for investment decisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks, enhancing its utility for investors [6]. Specific Earnings Estimates for Karooooo - For the fiscal year ending February 2026, Karooooo is expected to earn $1.87 per share, with a 7.8% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9]. - Karooooo's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Group 1 - Pearl Gray is a proprietary investment fund and independent market research firm focusing on Fixed-Income and Capital Flows [1] - The firm also provides analysis on equity REITs, Investment Fund Appraisal, and Bank Risk Analysis for its Seeking Alpha readers [1] Group 2 - The content published by Pearl Gray is independent analysis and does not constitute financial advice [1][3] - Readers are encouraged to consult a registered financial advisor before making investment decisions [3]

Core Insights - Karooooo reported strong third-quarter fiscal 2026 results, highlighting accelerating annual recurring revenue (ARR) growth, record subscriber additions, and continued profitability despite increased sales and marketing spending [4][6][7] Financial Performance - Total revenue for the quarter was ZAR 1,410 million, up 22%, with subscription revenue at ZAR 1,239 million, up 20% [1] - Operating profit increased 14% to ZAR 369 million, and earnings per share rose 11% to ZAR 8.55 [1] - Adjusted free cash flow increased 28% to ZAR 239 million, with year-to-date adjusted free cash flow up 37% to ZAR 597 million [7] Subscriber Growth - Total subscribers increased 16% to approximately 2.6 million, with a record net addition of about 111,000 during the quarter [2][6] - Commercial customer ARR retention remained at 95%, with subscription revenue representing 97% of contract revenue [1] ARR Growth - ARR increased 22% year over year to ZAR 5,106 million, and on a U.S. dollar basis, it rose 28% to $298 million [3][6] - This marked the fourth consecutive quarter of ARR growth acceleration [3] Segment Performance - Cartrack, the company's SaaS operations management platform, was the primary driver of growth, with revenue increasing 21% to ZAR 1,275 million [9] - Karooooo Logistics reported delivery-as-a-service revenue of ZAR 135 million, up 24%, with an operating profit margin of 7% [12] Regional Trends - In South Africa, subscription revenue growth accelerated to 21%, accounting for 72% of total Cartrack subscription revenue [13] - Average revenue per user (ARPU) in South Africa increased 7% to 162 ZAR [14] - In Europe, subscribers increased 16% to about 223,000, with subscription revenue rising 24% [15] Outlook - Management raised its fiscal 2026 Cartrack subscription revenue outlook to ZAR 4,785 million to ZAR 4,900 million, implying growth of 18% to 21% [16] - The company cautioned that the appreciation of the South African rand has created a currency translation headwind [17]