Karooooo Shares Slide Despite Revenue Gains in Second Quarter

Investors pushed Karooooo Limited shares down 8.5% to $56.82 in after-hours trading Monday, reacting to a second-quarter earnings report that failed to meet Wall Street projections. The decline arrived abruptly, reversing the stock's 2.9% gain during the regular session and stalling a year-to-date rally that had reached 36%.

Today, 01:23· Money Talk· 536 reads

Karooooo Shares Slide Despite Revenue Gains in Second Quarter

The technology firm posted a profit of 286.8 million South African rands, or ZAR9.28 per share, climbing from the ZAR243.6 million reported during the same period last year. Despite this year-over-year growth, the figure fell short of the ZAR9.55 per share anticipated by analysts surveyed by FactSet.

Revenue performance told a different story, reaching ZAR1.64 billion and exceeding the expected ZAR1.6 billion. Growth was driven by the company’s logistics arm, which saw a 36% revenue bump to ZAR189 million, while the Cartrack subsidiary reported a 19% increase in annualized recurring revenue to ZAR5.71 billion.

Karooooo Shares Slide Despite Revenue Gains in Second Quarter

Comments (0)