Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Karooooo Ltd. (KARO) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 13.5%, with projected EPS growth of 18.6% this year, surpassing the industry average of 18.3% [5] Group 2: Key Growth Metrics - The asset utilization ratio for Karooooo is 0.97, indicating that the company generates $0.97 in sales for every dollar in assets, significantly higher than the industry average of 0.58 [6] - Sales for Karooooo are expected to grow by 23% this year, compared to the industry average of 5.7% [7] Group 3: 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 3.9% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Karooooo favorably for potential outperformance in the market [11]

Karooooo (KARO) Q1 2026 Earnings Call July 23, 2025 08:00 AM ET Company ParticipantsPaul Bieber - VP - IR & Strategic FinanceCarmen Calisto - Chief Strategy & Marketing OfficerGoy Hoeshin - CFO & Executive DirectorIsaias Jose Calisto - CEO & Executive ChairmanPaul BieberHello, and welcome to Q1 FY twenty twenty six earnings call. On behalf of Kruz, we would like to thank you for joining us today. I'm Paul Bieber, VP of Investor Relations and Strategic Finance. We are joined today by Zach Callisto, founder a ...

Financial Data and Key Metrics Changes - In Q1 FY26, total revenue increased by 18% to 1,277 million ZAR, with subscription revenue also rising by 18% to 1,141 million ZAR [11][28] - Annual recurring revenue (ARR) grew by 18% to 4,574 million ZAR, and on a U.S. Dollar basis, it increased by 24% to $254 million [5][13] - Earnings per share (EPS) rose by 19% to 8.55 ZAR [15][33] - The company maintained a strong balance sheet with net cash and cash equivalents of 1,103 million ZAR [16][34] Business Line Data and Key Metrics Changes - Kartrak, the operations management SaaS platform, generated subscription revenue of 1,100 million ZAR, an increase of 19% [7][29] - Karoo Logistics, the delivery as a service offering, reported revenue of 121 million ZAR, up 20% [10][22] - Kartrak's operating profit margin remained stable at 30% despite increased investments in sales capacity [11][15] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 16%, contributing 70% of total subscription revenue [17][21] - Southeast Asia and the Middle East saw subscriber growth accelerate to 22%, with subscription revenue growth reaching 30% [18][19] - European subscription revenue growth accelerated to 22%, now accounting for 10% of total subscription revenue [20][21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa while expanding its distribution footprint in Asia and Europe [23][24] - A disciplined capital allocation strategy prioritizes organic growth and innovation, with a focus on returning capital to shareholders when growth opportunities are limited [25][26] - The company is committed to maintaining a strong financial profile while pursuing profitable growth opportunities in underpenetrated markets [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for both consumer and commercial customers in South Africa [41] - The company does not foresee significant impacts from U.S. tariffs on its Southeast Asia operations, attributing growth to local market dynamics [41] - Management reaffirmed the FY26 growth outlook, emphasizing the importance of strategic investments in sales and marketing [35][36] Other Important Information - The company reported a healthy subscription gross margin of 74% and a customer retention rate of 95% [16][28] - Free cash flow generation resumed, benefiting from disciplined working capital management [33][34] Q&A Session Summary Question: Subscriber growth trajectory in South Africa - Management noted strong traction in both commercial and consumer customer growth, expecting this trend to continue [41] Question: Impact of U.S. tariffs on Southeast Asia subscriber growth - Management believes that local economic growth is driving subscriber growth, not U.S. tariffs [41] Question: Cross-selling initiatives and their impact on ARR and ARPU - Management aims for a 6% increase in ARPU this year, with good progress made in Q1 [43] Question: Expansion strategy in Southeast Asia versus Africa - Management indicated that the market opportunity in Southeast Asia is larger than in Africa, driving the expansion strategy [44] Question: Mix between subscriber growth and cross-selling initiatives - Management reported a 2% uplift from cross-selling, with expectations for further increases as initiatives gain momentum [45] Question: Hiring capacity plans and their impact on subscription growth - Management expects a correlation between increased sales staff and subscriber growth, targeting a 28% increase in subscriber growth with a 70% increase in sales staff [47] Question: Contract performance rollout in South Africa - Management highlighted significant progress with the contract tag, viewing it as a game changer in the marketplace [52]

Q1 2026 Earnings Presentation July 23, 2025 1 Today's Presenters Zak Calisto Group CEO & Founder Goy Hoeshin Group CFO Carmen Calisto Group Chief Strategy & Marketing Officer 2 2 DISCLAIMER Forward-Looking Statements The information in this presentation (which includes any oral statements made in connection therewith, as applicable) includes "forward-looking statements." Forward-looking statements are based on our beliefs and assumptions and on information currently available to us, and include, without lim ...

Karooooo Ltd. (KARO) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.44%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.44, delivering a surprise of +18.92%.Over the last four quarters, the company h ...

Core Insights - Karooooo (KARO) is set to report its first-quarter fiscal 2026 results on July 22, with revenue expectations of $71.47 million, reflecting a 22.6% year-over-year increase, and earnings estimated at 45 cents per share, indicating a 15.38% rise from the previous year [1][2]. Group 1: Subscriber Growth and Product Adoption - Strong subscriber momentum from Cartrack in the fourth quarter of fiscal 2025 is anticipated to positively impact both revenue and earnings in the first quarter of fiscal 2026, with net additions of 79,009 subscribers, a 25% increase year-over-year [3]. - The successful launch and uptake of Cartrack-Tag are expected to contribute positively to revenue, with a focus on selling this product and AI video capabilities to existing customers [4]. Group 2: Regional Expansion and Sales Strategy - A planned 70% increase in sales headcount in Southeast Asia is expected to enhance revenue growth, with the region showing a 31% constant currency subscription revenue growth in the previous quarter [5]. - Southeast Asia is identified as a key growth market, being the second-largest contributor to group revenue [5]. Group 3: Operational Efficiency and Financial Metrics - Operational leverage is projected to support earnings growth, with Cartrack reporting a 34% operating profit margin and a 76% subscription gross margin in the previous quarter [6]. - Karooooo Logistics is expected to contribute to top-line growth, building on a 33% year-over-year revenue increase in fiscal 2025, driven by demand for capital-light e-commerce and logistics operations [7]. Group 4: Earnings Expectations - The combination of a positive Earnings ESP of +7.46% and a Zacks Rank of 3 suggests a favorable outlook for KARO's earnings performance [10].

Karooooo Ltd. (KARO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may ...

Core Insights - In the current economic climate, new analyst coverage is increasingly valuable for investors navigating volatility, with the Federal Reserve maintaining interest rates and signaling potential cuts in 2025, amid rising concerns about stagflation as GDP growth slows to 1.4% and inflation rises to 3% [1][2] Analyst Coverage Importance - New analyst coverage provides timely insights, updated models, and context on how companies may perform amid inflationary pressures, cost volatility, and weakening demand [2][3] - Analysts possess specialized knowledge and expertise, offering critical insights into a company's financial health, growth potential, competitive standing, and industry trends, which are often difficult for individual investors to acquire independently [3][5] - Coverage initiation on a stock typically indicates higher investor interest, as investors believe that the company under coverage holds significant value [4][6] Market Impact of Analyst Coverage - New analyst coverage can lead to immediate stock price volatility, with positive ratings attracting bullish sentiment and driving share prices higher, while neutral or negative ratings may trigger sell-offs [8] - Favorable coverage from multiple analysts can enhance investor confidence, leading to sustained upward momentum in valuation [8][10] Recent Stock Highlights - Recent analyst coverage on Karooooo Ltd. (KARO), OppFi Inc. (OPFI), QXO, Inc. (QXO), and United Fire Group, Inc. (UFCS) reflects analyst confidence despite economic uncertainty, with each stock seeing recent EPS estimate hikes [10] - Karooooo shares have gained 36.4% in the past three months, with a fiscal 2026 EPS estimate increase to $1.87, indicating 14.7% year-over-year growth [14] - OppFi shares have gained 73.2% in the past three months, with a 2025 EPS estimate increase to $1.23, indicating 29.5% year-over-year growth [15] - QXO shares have gained 78% in the past three months, with a 2025 EPS estimate improving to 39 cents from a loss of 12 cents [16] - United Fire Group shares have gained 9.4% in the past three months, with a 2025 EPS estimate increase to $3.50, indicating a 2.4% year-over-year decline [17] Screening Criteria for Stocks - Stocks with increased analyst coverage and improving average ratings are prioritized, with additional parameters including a stock price greater than or equal to $5 and an average daily volume greater than or equal to 100,000 shares [11][12]

Core Insights - Karooooo Ltd. (NASDAQ: KARO) is a relatively small company in the public markets but has established a quality business [1] Company Overview - The analysis begins coverage of Karooooo Ltd., indicating its potential for growth and investment interest [1]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Karooooo Ltd. (KARO) , which belongs to the Zacks Internet - Software industry.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.04%.For the last reported quarter, Karooooo came out with earnings of $0.44 per share ve ...