Karooooo Q1 Revenue Rises 37% to $90.4M Despite 14% EPS Miss
KARO•Karooooo Ltd. posted Q1 EPS of $0.45, missing estimates by 14%, but revenue jumped 37% year-over-year to $90.38 million, topping forecasts. Adjusted free cash flow surged 90% to ZAR 809 million, debt-to-equity remains low at 0.25, and the company declared a $1.50 per share dividend.
1. Q1 Earnings Surprise
Karooooo Ltd. reported Q1 EPS of $0.45, missing analyst estimates by 14% after four quarters of mostly positive surprises.
2. Revenue Growth Tops Estimates
Revenue climbed to $90.38 million, a 37% increase from $66.00 million a year earlier, surpassing the $89.42 million forecast.
3. Strong Cash Flow and Financial Health
Adjusted free cash flow surged 90% to ZAR 809 million while maintaining a low debt-to-equity ratio of 0.25, indicating conservative leverage.
4. Dividend Declaration
The company declared a $1.50 per share dividend for fiscal 2026, reflecting confidence in its cash generation and financial stability.
