Karooooo Q4 subscription revenue rises on Cartrack performance

Karooooo

14/05/2026 06:18

Overview

Operational intelligence platform's Q4 subscription revenue rose 18% yr/yr

Q4 adjusted EPS fell 24% yr/yr

Lower Q4 profitability driven by higher sales and marketing investment

Outlook

Karooooo sees FY 2027 Cartrack subscription revenue between ZAR5.7 bln and ZAR6.0 bln

Company expects FY 2027 EPS between ZAR38.50 and ZAR40.00

Karooooo forecasts FY 2027 Cartrack gross profit margin of 70%-72% and operating profit margin of 27%-30%

Result Drivers

SUBSCRIBER GROWTH - Record Cartrack subscriber additions and expanded distribution network drove higher subscription revenue

SALES AND MARKETING INVESTMENT - Increased sales and marketing costs to support future growth weighed on Q4 operating profit and margins

Company press release: ID:nJseN0001a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
ZAR 7.19
Q4 Subscription Revenue
ZAR 1.28 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Karooooo Ltd is $60.00, about 26.4% above its May 13 closing price of $47.47

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)