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Karooooo (KARO)
NASDAQ:KARO
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Earnings Data
Report Date
Jan 16, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
$0.37Last Year’s EPS
$6.34Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Oct 15, 2024
|% Change Since: 2.86%
|Next Earnings Date:Jan 16, 2025
Earnings Call Sentiment|Positive
The earnings call was predominantly positive, with strong revenue and subscriber growth, significant profitability improvements, and an optimistic outlook with increased guidance for FY '25. However, there were minor challenges with logistics growth and share buybacks.Company Guidance
During the Q2 2025 earnings call for Karooooo, the company provided updated guidance for the fiscal year. The midpoint of the subscriber outlook was raised to between 2.3 million and 2.4 million, up from the previous range of 2.2 million to 2.4 million. Cartrack subscription revenue is now anticipated to be between ZAR 3.95 billion and ZAR 4.15 billion, slightly adjusted from the earlier forecast of ZAR 3.9 billion to ZAR 4.15 billion. Despite this upward revision, the outlook for Cartrack's operating profit margin remains steady at 27% to 31%, and Karooooo's earnings per share guidance is unchanged at ZAR 27.5 to ZAR 31. The company emphasized its commitment to driving profitable growth, leveraging its robust unit economics, high gross profit margin of 75%, and a commercial customer retention rate of 95%. With strong cash reserves of ZAR 674 million, Karooooo plans to continue investing in geographic expansion and sales and marketing, especially in Southeast Asia, which is expected to be a significant growth driver in the medium to long term.Strong Revenue and Subscriber Growth
Karooooo delivered total revenue of ZAR 1,107 million, an increase of 16% year-on-year, with subscription revenue increasing by 15%. They ended Q2 with over 2.1 million subscribers, a 17% increase year-on-year.
Profitability and Financial Performance
Adjusted earnings per share increased by 31% year-on-year to ZAR 7.35. Cartrack's gross margin improved by approximately 300 basis points to 74%, and the adjusted EBITDA margin was 45%.
Karooooo Logistics Growth
Karooooo Logistics delivered revenue of ZAR 101 million, an increase of 40% year-on-year, and an operating profit of ZAR 9 million.
Expanding Operations and Market Potential
Karooooo increased sales and marketing investments in Southeast Asia, noting it as the most compelling growth opportunity. They also moved to a newly built central office in South Africa to support higher organic growth.
Strong Balance Sheet and Cash Flow
Karooooo ended the quarter with net cash and cash equivalents of ZAR 674 million. Free cash flow was ZAR 166 million, and they paid a cash dividend of $1.08 per share, a 27% increase year-over-year.
Increased Guidance for FY '25
Based on strong Q2 performance, Karooooo raised its guidance for FY '25, with expectations for Cartrack subscribers and subscription revenue increased at the midpoint.
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KARO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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KARO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Oct 15, 2024 | $45.50 | $38.40 | -15.60% |
| Jul 18, 2024 | $32.99 | $33.21 | +0.67% |
| May 15, 2024 | $25.84 | $26.69 | +3.29% |
| Jan 23, 2024 | $24.26 | $24.45 | +0.78% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Karooooo (KARO) report earnings?
Karooooo (KARO) is schdueled to report earning on Jan 16, 2025, TBA Not Confirmed.
What is Karooooo (KARO) earnings time?
Karooooo (KARO) earnings time is at Jan 16, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KARO EPS forecast?
KARO EPS forecast for the fiscal quarter 2025 (Q3) is $0.37.
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