Karooooo Limited Shares Fall on 2Q Earnings Miss

Dow Jones10-20

Karooooo Limited shares fell after the company's adjusted earnings in the second quarter fell short of Wall Street's expectations.

Shares fell 8.5% to $56.82 in after-hours trading on Monday. The stock closed up 2.9% at $62.10, and was up 36% through the close.

The technology company on Monday reported a profit of 286.8 million South African rands ($17.5 million), or ZAR9.28 a share. That compares with a profit of ZAR243.6 million, or ZAR7.88 a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were also ZAR9.28 a share. Analysts polled by FactSet were expecting ZAR9.55 a share.

Revenue rose to ZAR1.64 billion, up from ZAR1.34 billion a year prior. Analysts were expecting ZAR1.6 billion in revenue.

Revenue from Karooooo Logistics, in which the parent has a 91.5% stake, rose 36% to ZAR189 million. Cartrack, a wholly owned subsidiary, reported a 19% increase in annualized recurring revenue to ZAR5.71 billion.

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