Karooooo Ltd.'s stock plummeted 5.20% during intraday trading on Thursday, following the release of its unaudited fourth quarter and full year 2026 financial results.
The company reported Q4 earnings per share of ZAR 7.19 and subscription revenue of ZAR 1,281 million. Alongside the results, management provided its outlook for fiscal year 2027, projecting Cartrack's subscription revenue between ZAR 5,700 million and ZAR 6,000 million, with a gross profit margin between 70% and 72%. Earnings per share for FY27 are forecast to be in the range of ZAR 38.50 to ZAR 40.00.
Investor sentiment appeared to be negatively impacted by the company's statement that it "envisages a slow-down in hiring in FY 2027," which may signal a more cautious approach to growth or operational adjustments in the coming year.
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