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Date : 19/07/2022

WiseTech Global (ASX: WTC) Shares Surge Following FY22 Guidance Upgrade

WiseTech Global (ASX WTC) is the biggest company in the world that makes and sells software solutions for the logistics execution industry. The company aims to significantly impact the world by developing game-changing solutions that facilitate and enhance the capabilities of individuals who control and manage supply chains throughout the globe.

Over 18,000 logistics firms in 165 countries are its clients, including 42 of the top 50 global third-party service providers and 24 of the 25 biggest global freight forwarders. CargoWise, its main product, conducts approximately 72 billion data transactions yearly.

The WTC ASX stock is gaining in the market after the company provided FY22 guidance.

WTC: 1H22 Key Financials (In AUD)

The Wisetech share price is trading at $44.25 and have gained more than 4% after the news hit the market. The WTC stock has gained more than 44% in the previous twelve months.

As WiseTech Global (ASX: WTC) shares surge following the FY22 guidance upgrade, the current market cap of the company has now reached 14.44 Billion AUD.

ASX WTC trend on tradingview
  1. The company’s total revenue was $281 million, increasing 18% compared to 1H21.
  2. The company’s gross profit was $242.6 million for 1H22, a 19% increase from 1H21. This resulted in a gross profit margin of 86%.
  3. EBITDA of the company was $137.7 million, up 54% on 1H21, reflecting strong revenue growth and $19.7m net cost reduction benefits.
  4. The company’s underlying NPAT was $77.3 million, gaining 77% on 1H21, reflecting the ability of its business model to deliver revenue growth and earnings expansion.
  5. As of 31 December 2021, the company had cash and cash equivalents of $380.3 million.

WTC: What is causing the surge?

WiseTech Global (ASX: WTC) today updated its FY22 guidance. The company previously provided its FY22 guidance at the end of 1H22 results.

  1. The company expects full-year revenue between $600 million to $635 million, representing a growth of 18% to 25%. Its FY21 revenue was $507.5 million.
  2. The company increased its FY22 EBITDA range to $310m–$320m from $275m–$295m. It reflects a growth of 50% to 55%.

The new forecast reflects top-line solid growth and cost efficiencies ahead of expectations.

On 24 August 2022, the company will publish the audited statutory results of the fiscal year 2022.

WTC: Founder and CEO’s Remarks

According to WiseTech’s founder and chief executive officer, Richard White, their FY22 forecast has been upgraded due to its success throughout the current economic cycle.

“Product-driven and 3P-focused strategy has allowed them to continue to produce excellent revenue growth and considerable operational leverage. They are excited to share our full-year results with the market.”

WTC: Trailing Twelve Months Performance

The WTC stock has gained more than 44% in the previous year. Even thou the world is going through economic turmoil, WTC shares are among the tech stocks that have gained significantly.

Although the YTD graph shows that the company’s shares seem to have been hurt by market volatility caused by rising inflation and rate hikes.


What is the guidance & forecast for WiseTech Global Shares? Should this be on your to Hold or Buy list?

WiseTech Global’s updated FY22 guidance shows that the company is expanding its business. However, potential investors should be mindful that the WTC share price is now trading at high multiples of 37.1x EV/EBITDA and 64.1x P/E. This makes the WTC stock increasingly sensitive to another selloff if EBITDA growth in the future falls short of expectations.

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