WiseTech Global Shares Up on AGM Presentation (ASX:WTC)

The share price of logistics software developer WiseTech Global Ltd [ASX:WTC] has seen a decent increase today, thanks to the release of its annual general meeting presentation.

WTC has been one of Australia’s top performing tech stocks since the pandemic-induced market crash, climbing ~190% since March.

WiseTech Share Price Chart - ASX WTC

Source: Tradingview.com

WTC shares saw a massive jump in August with thanks to its earnings report, which pushed the share price up ~34%.

Shares have trended upwards since then, although momentum has waned this month.

At the time of writing, the WTC share price is up 0.76%, or 23 cents, to trade at $30.34 per share.

Is reassurance the key to happy shareholders?

WTC’s annual general meeting presentation essentially served as a reminder to investors of how well the company performed in FY2020.

We analysed WTC’s financial performance back in August — make sure you have a read here.

To quickly summarise, WTC delivered a 23% increase in revenue to $429.4 million and recorded earnings of $126.7 million, up 17% on FY2019.

However, its underlying net profit after tax was flat at $52.6 million — not necessarily a bad thing for a company going through a high-growth period.

The next Afterpay? Discover three promising Aussie fintechs that are currently trading below $1. Click here to learn more.

But we already know all of this.

What might have investors grinning today is that WTC management reaffirmed its profit guidance for the current financial year.

In August, the company provided full-year guidance for revenue of $470­–510 million and earnings of $155–180 million.

Founder and CEO Richard White commented:

Looking ahead, with penetration of automated, truly global logistics solutions still in early stages, WiseTech’s opportunity for growth is vast. We believe CargoWise is the market-leading platform for global logistics execution and is well-positioned to strengthen its position in the global market over the near-term and long-term.’

Outlook for the WiseTech share price

Back in August I said we could see the WTC share price test the $30-mark as the market began to dig itself out of the crash.

Which we’ve seen happen thus far.

WTC management warned that the immediate and longer-term impacts of COVID-19 are still up in the air but seemed far more confident in WTC’s long-term growth prospects beyond the pandemic.

The software developer broke the $35-mark in mid-2019, a level investors have no doubt set their eyes on.

Given its strong earnings growth during adverse operating conditions, this isn’t an unrealistic price in my opinion.

If you fell like you missed the WTC boat or are on the hunt for something similar, we have a great report on four well-positioned small-caps that could follow a similar trajectory. You can get that report right here.

Regards,

Lachlann Tierney,
For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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