South Africa's Karooooo Q4 subscription revenue rises 22%

Karooooo

13/05/2026 21:32

Overview

South African telematics platform's Q4 Cartrack subscription revenue grew 22% yr/yr

Fiscal 2026 adjusted EPS rose 3% in ZAR, 20% in USD

Company expects FY 2027 EPS growth but sees contracting gross margin

Outlook

Karooooo aims to accelerate subscription revenue growth in FY 2027

Company sees mid-point FY 2027 EPS growth of 21% versus FY 2026 (excluding secondary offering costs)

Karooooo expects gross profit margin to contract in FY 2027

Result Drivers

DISTRIBUTION INVESTMENT - Co said investments in its distribution network supported accelerated growth and showed early positive results

PRODUCT INNOVATION - Ongoing development, enhanced AI-powered video, and launch of Cartrack-Tag strengthened value proposition, per CEO Zak Calisto

Company press release: ID:nBw5SGVxda

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 ARR
ZAR 5.18 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 23.9% above its May 12 closing price of $48.43

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

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(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.)