Latest news with #KaroooooLtd
Yahoo
18-07-2025
- Business
- Yahoo
KARO Gears Up to Post Q1 Earnings: What's in Store for the Stock?
Karooooo KARO is scheduled to report its first-quarter fiscal 2026 results on July Zacks Consensus Estimate for KARO's first-quarter fiscal 2026 revenues is currently pegged at $71.47 million, indicating a 22.6% increase from the year-ago quarter's reported consensus mark for earnings is pinned at 45 cents per share, which has been revised upward by 2 cents over the past 30 days. The figure suggests a 15.38% increase from the year-ago reported surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 11.42%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Karooooo Ltd. Price and EPS Surprise Karooooo Ltd. price-eps-surprise | Karooooo Ltd. Quote Let us see how things are shaping up for the upcoming announcement. Key Factors to Consider for KARO Cartrack's strong subscriber momentum in the fourth quarter of fiscal 2025 is expected to have carried forward into the first quarter of fiscal 2026, benefiting both the top and bottom line. The company recorded net additions of 79,009 in the fiscal fourth quarter, an increase of 25% year over year. This momentum, supported by strong execution, disciplined growth at scale and efficient customer acquisition, is likely to have translated into healthy subscription revenue gains during the quarter under launch and early uptake of Cartrack-Tag is also expected to have contributed positively in the fiscal first quarter. The infrastructure for the product was fully established across Southern Africa in the fiscal fourth quarter, and the rollout was described as successful. Going forward, the company is placing a strong focus on selling Cartrack-Tag and AI video capabilities to existing customers. Average revenue per user is expected to have increased in the quarter under review, supported by initial product adoption. Additionally, KARO's planned increase of 70% in sales headcount in Southeast Asia is expected to have started contributing to revenue growth in the fiscal first quarter. The region recorded constant currency subscription revenue growth of 31% in the fiscal fourth quarter. The company highlighted strong sales momentum and indicated continued hiring to support expansion. Southeast Asia was identified as the second-largest contributor to group revenue and remains a priority market for growth going leverage is also expected to have supported earnings growth in the quarter to be reported. In the fiscal fourth quarter, Cartrack reported a 34% operating profit margin and a subscription gross margin of 76%. The company highlighted efficient customer acquisition and a commercial retention rate of 95%. These metrics reflected healthy unit economics during the quarter. This trend is expected to have continued into the fiscal first Logistics is expected to have supported top-line growth in the fiscal first quarter, building on the segment's 33% year-over-year revenue increase in fiscal 2025. Continued demand from large enterprises for capital-light e-commerce and logistics operations is likely to have driven volume expansion. While margins remain lower than Cartrack's, improved scale and execution are expected to have contributed positively to the bottom line. What Our Model Says According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. KARO has an Earnings ESP of +7.46% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Stocks to Consider Here are a few other companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:CyberArk Software CYBR has an Earnings ESP of +1.59% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 15.1% year to date. It is scheduled to report its second-quarter 2025 results on Aug. Technologies DELL has an Earnings ESP of +4.83% and a Zacks Rank #1 at shares have gained 7.5% year to date. It is scheduled to report its second-quarter fiscal 2026 results on Aug. AAPL currently has an Earnings ESP of +4.55% and a Zacks Rank #3. AAPL shares have lost 16.1% year to date. It is slated to report its third-quarter fiscal 2025 results on July 31. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Karooooo Ltd. (KARO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Why Karooooo (KARO) is Poised to Beat Earnings Estimates Again
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 versus the Zacks Consensus Estimate of $0.37 per share, representing a surprise of 18.92%. For the previous quarter, the company was expected to post earnings of $0.38 per share and it actually produced earnings of $0.43 per share, delivering a surprise of 13.16%. For Karooooo, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Karooooo currently has an Earnings ESP of +7.46%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #1 (Strong Buy) indicates that another beat is possibly around the corner. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Karooooo Ltd. (KARO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
23-05-2025
- Business
- Business Insider
Africa welcomes new dollar billionaire from the world of car tracking technology
Africa has welcomed a new addition to its exclusive circle of dollar billionaires, bringing the continent's total to 23. Zak Calisto, founder and CEO of Karooooo Ltd., has become Africa's 23rd dollar billionaire. Calisto owns about two-thirds of Karooooo Ltd., which recently reported strong subscription revenue growth. As of March 2025, Africa boasts a combined billionaire wealth exceeding $105 billion, a record high. Zak Calisto, founder and CEO of Karooooo Ltd, a vehicle tracking and fleet management services firm, has joined Africa's exclusive circle of dollar billionaires. Karooooo Ltd., which began as Cartrack, has experienced significant growth after expanding its offerings to include AI-powered driver monitoring and fleet management services. This strategic shift has propelled Zak Calisto into the ranks of dollar billionaires. According to Bloomberg, Zak Calisto, the Portugal-born founder of Karooooo Ltd. (formerly Cartrack), owns approximately two-thirds of the company. The company's stock surged after reporting double-digit subscription revenue growth and a 25% increase in earnings per share for the year through February 2025. Calisto's journey from a local entrepreneur to a global billionaire showcases Africa's growing influence in the digital economy. His company, which moved its headquarters to Singapore in 2020, sees Asia as crucial to its future expansion plans. With a customer base of 2.3 million, mostly in South Africa, Karooooo Ltd. plans to prioritize organic growth but remains open to strategic acquisitions. " There's significant potential for even faster growth," Calisto said in an interview. Africa's billionaire count As of March 2025, Africa had 22 billionaires on its Forbes list, with fortunes spanning sectors such as manufacturing, retail, petroleum, real estate, and fashion. For the first time ever, the combined wealth of these African billionaires surpassed $100 billion, reaching a record $105 billion, up from $82.4 billion in the previous year when the continent had 20 billionaires. South Africa has consistently maintained a strong hold on the list, contributing the highest number of billionaires. In the 2025 ranking, South Africa accounted for seven billionaires, followed by Nigeria and Egypt with four each. The list also includes three billionaires from Morocco, one from Algeria (Issad Rebrab), one from Tanzania (Mohammed Dewji), and one from Zimbabwe (Strive Masiyiwa).
Yahoo
16-05-2025
- Business
- Yahoo
Karooooo Ltd (KARO) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Karooooo Ltd (NASDAQ:KARO) reported a 15% increase in subscription revenue for FY25, with a 19% increase on a US dollar basis. Cartrack's operating profit margin was a robust 34%, showcasing strong financial performance. Karooooo Ltd (NASDAQ:KARO) achieved a 17% increase in total subscribers, with notable growth in South Africa and Europe. The company maintained a high commercial retention rate of 95%, indicating strong customer loyalty. Karooooo Ltd (NASDAQ:KARO) ended FY25 with a strong balance sheet, holding net cash and cash equivalents of 838 million ZAR. Karooooo Ltd (NASDAQ:KARO) anticipates lower earnings per share growth in FY26 due to planned upfront investments in sales and marketing. The company experienced a decline in quarterly adjusted free cash flow due to deliberate investments to support growth. Net subscriber additions in FY25 were slightly down compared to FY24 levels, indicating potential challenges in market expansion. Karooooo Ltd (NASDAQ:KARO) faces challenges with low liquidity, impacting the effectiveness of share buybacks. The company expects a temporary dip in sales productivity as new hires in Asia mature over the first six months. Warning! GuruFocus has detected 7 Warning Signs with KARO. Q: Can you discuss the launch and reception of the Cartrack tag and its potential for adoption within your core subscription base? A: Zach Callisto, Founder and Group CEO: We've successfully launched the Cartrack tag in Southern Africa, from Cape Town to Kenya. It's been well-received by both businesses and consumers, and we are achieving substantial scale. We are considering expanding this to Asia next. Q: What are the key drivers for growth in 2026, particularly regarding subscriber count and product upsell? A: Zach Callisto, Founder and Group CEO: In FY26, our focus will be on enhancing the customer offering with the Cartrack tag and video solutions, aiming for a 10% increase in ARPU by year-end. We will concentrate on sales to existing customers to drive growth. Q: How are you planning to expand your sales capacity, and what is the current status of your salesforce? A: Zach Callisto, Founder and Group CEO: We have over 5,000 employees and plan to increase our staff by about 1,500 this year. We saw good traction in the last six months and expect continued growth in FY26, particularly in Asia, where we plan to increase our salesforce by 70%. Q: What is your outlook for regional growth, particularly in South Africa, Europe, and Southeast Asia? A: Zach Callisto, Founder and Group CEO: All regions offer significant growth opportunities. Asia presents the largest market with the highest growth potential, but we expect good growth across all regions in FY26. Q: With a net cash balance of about 840 million, what are your plans regarding dividends and share buybacks? A: Zach Callisto, Founder and Group CEO: We focus on capital allocation for shareholder returns. If we cannot efficiently invest in growth, we will consider returning excess cash to shareholders, typically deciding on dividends in Q2. Share buybacks are challenging due to low liquidity, so we focus on other priorities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Karooooo Ltd (KARO) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Karooooo Ltd (NASDAQ:KARO) reported a 15% increase in subscription revenue for FY25, with a 19% increase on a US dollar basis. Cartrack's operating profit margin was a robust 34%, showcasing strong financial performance. Karooooo Ltd (NASDAQ:KARO) achieved a 17% increase in total subscribers, with notable growth in South Africa and Europe. The company maintained a high commercial retention rate of 95%, indicating strong customer loyalty. Karooooo Ltd (NASDAQ:KARO) ended FY25 with a strong balance sheet, holding net cash and cash equivalents of 838 million ZAR. Karooooo Ltd (NASDAQ:KARO) anticipates lower earnings per share growth in FY26 due to planned upfront investments in sales and marketing. The company experienced a decline in quarterly adjusted free cash flow due to deliberate investments to support growth. Net subscriber additions in FY25 were slightly down compared to FY24 levels, indicating potential challenges in market expansion. Karooooo Ltd (NASDAQ:KARO) faces challenges with low liquidity, impacting the effectiveness of share buybacks. The company expects a temporary dip in sales productivity as new hires in Asia mature over the first six months. Warning! GuruFocus has detected 7 Warning Signs with KARO. Q: Can you discuss the launch and reception of the Cartrack tag and its potential for adoption within your core subscription base? A: Zach Callisto, Founder and Group CEO: We've successfully launched the Cartrack tag in Southern Africa, from Cape Town to Kenya. It's been well-received by both businesses and consumers, and we are achieving substantial scale. We are considering expanding this to Asia next. Q: What are the key drivers for growth in 2026, particularly regarding subscriber count and product upsell? A: Zach Callisto, Founder and Group CEO: In FY26, our focus will be on enhancing the customer offering with the Cartrack tag and video solutions, aiming for a 10% increase in ARPU by year-end. We will concentrate on sales to existing customers to drive growth. Q: How are you planning to expand your sales capacity, and what is the current status of your salesforce? A: Zach Callisto, Founder and Group CEO: We have over 5,000 employees and plan to increase our staff by about 1,500 this year. We saw good traction in the last six months and expect continued growth in FY26, particularly in Asia, where we plan to increase our salesforce by 70%. Q: What is your outlook for regional growth, particularly in South Africa, Europe, and Southeast Asia? A: Zach Callisto, Founder and Group CEO: All regions offer significant growth opportunities. Asia presents the largest market with the highest growth potential, but we expect good growth across all regions in FY26. Q: With a net cash balance of about 840 million, what are your plans regarding dividends and share buybacks? A: Zach Callisto, Founder and Group CEO: We focus on capital allocation for shareholder returns. If we cannot efficiently invest in growth, we will consider returning excess cash to shareholders, typically deciding on dividends in Q2. Share buybacks are challenging due to low liquidity, so we focus on other priorities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
