Shares of Karooooo Ltd. (NASDAQ: KARO) tumbled 5.14% in after-hours trading on Tuesday following the release of the company's second-quarter earnings report. The sharp decline came as the mobility technology company's earnings fell short of analyst expectations, despite a slight beat on revenue.

Karooooo reported adjusted earnings per share of $0.44, missing the analyst consensus estimate of $0.46 by 4.35%. This figure, however, represents a 15.79% increase from the same period last year when the company posted earnings of $0.38 per share. On the revenue front, Karooooo slightly outperformed expectations, reporting quarterly sales of $75.598 million, which edged past the analyst consensus estimate of $75.510 million by 0.12%. The revenue figure marks a substantial 24.54% increase compared to the $60.701 million reported in the same quarter of the previous year.

Despite the mixed results, Karooooo maintained its guidance for the fiscal year 2026, indicating confidence in its long-term outlook. However, the earnings miss appears to have overshadowed the revenue growth and steady guidance, leading to the significant after-hours sell-off. Investors will likely be watching closely for any additional commentary from management on the company's growth trajectory and profitability in the coming quarters.