Karooooo Ltd. (KARO) Q2 Earnings and Revenues Top Estimates

Core Insights - Karooooo Ltd. (KARO) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.40 per share a year ago, resulting in an earnings surprise of +2.17% [1] - The company achieved revenues of $76.13 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.83% and up from $60.7 million year-over-year [2] - Karooooo's stock has increased approximately 16.3% since the beginning of the year, outperforming the S&P 500's gain of 13.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48, with expected revenues of $78.35 million, and for the current fiscal year, the consensus EPS estimate is $1.93 on revenues of $308.19 million [7] - The estimate revisions trend for Karooooo was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Karooooo belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]