WiseTech Global Shares Rise on FY22 Guidance Upgrade

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Software and logistics technology stock WiseTech Global [ASX:WTC] shares rose on Friday after upgrading its FY22 guidance.

WTC now expects FY22 revenue to be at the top end of its $600–635 million guided range.

Expected FY22 EBITDA guidance range has now shifted from $275–295 million to $310–320 million.

WTC shares are up 45% over the past 12 months, however, the stock is down 25% year to date.

ASX:WTC Wisetech stock chart

Source: Tradingview.com

WiseTech global provides upgraded guidance

With other stocks issuing downgrades amid macroeconomic uncertainty, WiseTech surprised the market with an EBITDA guidance upgrade.

WiseTech now expects its FY22 revenue to reach the higher end of its existing estimated guidance range of between $600 million to $635 million.

But the biggest revision related to WTC’s FY22 EBITDA.

Expected FY22 EBITDA rose to $310–320 million from $275–295 million.

The EBITDA upgrade reflected ‘strong top line growth and cost efficiencies ahead of expectations.’

The revised range means WTC expects FY22 EBITDA to rise 50%-55% on FY21’s EBITDA of $206.7 million.

ASX:WTC revenue table 2022

 

Source: Wisetech

Richard White, WiseTech’s Founder and CEO, said:

We are upgrading our FY22 guidance, with our performance reflecting the resilience of the WiseTech business model and strategy through the cycle.

Our product led approach and focus on our 3P strategy has enabled us to continue to deliver strong top line growth and drive significant operating leverage. We look forward to updating the market further at our full year results.’

More on the company’s full year results are expected to be released on 24 August.

WTC share price outlook

In May, speaking at the Macquarie Bank Conference, WTC CEO Richard White said lockdowns in China have had no impact on freight bookings while the Russia-Ukraine war offered the company opportunities to leverage its logistics services.

As the Australian Financial Review then reported:

Russia’s invasion of Ukraine has made logistics providers scramble to adhere to global restrictions on facilitating Russian bulk exports, but Mr White said the digitisation of the supply chain was starting to keep up with the dynamism of geopolitical demands.

“The logistics supply chains are becoming very resilient and can solve themselves around problems like this,” he said.

WiseTech has become the go-to software provider for logistics giants such as DHL and FedEx as they grapple with digital disruption of global supply chains, tight capacity, cost increases and surging demand.

Its CargoWise One product, which gives freight companies visibility over their networks, systems and interactions with ports in more than 160 countries, has turbocharged the company’s profitability and boosted its share price.’

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Regards,

Kiryll Prakapenka,

For Money Morning

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

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