We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The 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 figure.
The 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 figure.
KARO 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.)
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 review.
The 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 forward.
Operational 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 quarter.
Karooooo 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:
Image: Bigstock
KARO Gears Up to Post Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Karooooo (KARO - Free Report) is scheduled to report its first-quarter fiscal 2026 results on July 22.
The 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 figure.
The 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 figure.
KARO 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 review.
The 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 forward.
Operational 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 quarter.
Karooooo 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 - Free Report) 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 here.
CYBR shares have gained 15.1% year to date. It is scheduled to report its second-quarter 2025 results on Aug. 8.
Dell Technologies (DELL - Free Report) has an Earnings ESP of +4.83% and a Zacks Rank #1 at present.
DELL shares have gained 7.5% year to date. It is scheduled to report its second-quarter fiscal 2026 results on Aug. 28.
Apple (AAPL - Free Report) 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.