Karooooo Ltd. (KARO) Surpasses Q4 Earnings and Revenue Estimates

Company Performance - Karooooo Ltd. reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of$0.37 per share, and showing an increase from $0.36 per share a year ago, resulting in an earnings surprise of 18.92$66 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 4.93%, compared to $57.64 million in the same quarter last year [2] - Over the last four quarters, Karooooo has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Future Outlook - The immediate price movement of Karooooo's stock will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is$0.38 on revenues of $64.77 million, and for the current fiscal year, it is$1.72 on revenues of $272.15 million [7] - The estimate revisions trend for Karooooo is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Karooooo belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]