Karooooo Ltd. (KARO) Q3 Earnings and Revenues Surpass Estimates

Core Insights - Karooooo Ltd. (KARO) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of$0.38 per share, and showing an increase from $0.34 per share a year ago, resulting in an earnings surprise of 13.16$65.51 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 0.87% and up from 57.36 million year-over-year [2] - Karooooo has outperformed the S&P 500, gaining approximately 5.9% since the beginning of the year, while the S&P 500 has declined by 0.8% [3] Earnings Outlook - The future performance of Karooooo's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is 0.40 on revenues of $66.9 million, and for the current fiscal year, it is$1.61 on revenues of $256.42 million [7] Industry Context - The Internet - Software industry, to which Karooooo belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]