The WiseTech Global Ltd (ASX: WTC) share price has been the top-performing share from the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the past month, according to data from S&P Global Market Intelligence.
That will come as great news for long-term shareholders who remained faiuthful to the business following WiseTech’s interim results announcement in February.
From a high of $16.27, the shares dipped as low as $9.22 in April. Since then they have rebounded more than 53%, with a 41% gain in the past 30 days alone.
WiseTech, which has a market capitalisation of $4.3 billion, is a software-as-a-service (SaaS) business that provides mission-critical software to the logistics services industry. Its core product, CargoWise One, is designed to drastically increase a logistic service provider’s productivity and improve their document management, whilst also helping to ensure they remain compliant with global customs regulations.
The company has recorded impressive growth since its initial public offering (IPO) in April 2016 and made a number of recent acquisitions. While it’s possible that many of these acquisitions won’t add a meaningful amount to WiseTech’s top or bottom lines in the near future, they are designed to enhance the value of the product in the long run.
However, the catalyst behind WiseTech’s stunning run-up in share price of recent was likely its revenue guidance update on 1 May 2018. The company made a slight upgrade to its previous revenue guidance and now expects its top-line to grow somewhere between 37% and 43%, within a range of $210 million and $220 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) is also expected to be between $71 million and $75 million, up from $53.9 million in FY2017.
WiseTech is an attractive founder-led business with lots of opportunity for growth. If you haven’t already, it may be worth adding this one to your watchlist.
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Motley Fool contributor Ryan Newman owns shares of WiseTech Global. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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