The WiseTech (ASX:WTC) share price is up over 40% in a month!

Let’s take a closer look.

| More on:
A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The share price of ASX tech company WiseTech Global Ltd (ASX: WTC) has been skyrocketing recently. Shares in the logistics software developer have risen close to 47% in the last month alone – and are now up almost 80% so far this year!

Let’s take a look at some of the factors that may be driving these big gains in the WiseTech share price.

Company background

WiseTech’s flagship product is a centralised global trade and logistics platform called CargoWise. The platform aims to give WiseTech’s corporate customers the ability to manage their entire supply chain in one single application. For example, CargoWise can help its users stay on top of their inventory levels, track cargo internationally, and even ensure that they pay the correct import taxes, duties and tariffs.

WiseTech is no stranger to media attention. It forms part of the much-vaunted WAAAX group of ASX technology growth shares – along with fellow market darlings Altium Limited (ASX: ALU), Afterpay Ltd (ASX: APT), Appen Ltd (ASX:APX) and Xero Limited (ASX: XRO). However, the WiseTech share price has been the standout performer amongst the group so far this year and is the only one to have posted double-digit growth.

Recent financials

WiseTech released its FY21 results to the market on 25 August. It reported strong results across the board, with total revenues coming in at $507.5 million – an uplift of 18% year-on-year. This landed at the top end of WiseTech’s previously issued guidance of between $470 million and $510 million.

Earnings before interest, tax, depreciation and amortisation expenses (EBITDA) came in at $206.7 million for the year. This was a year-on-year increase of over 60%, and easily exceeded WiseTech’s guidance range of between $165 million and $190 million. The unexpectedly high uplift was driven by company-wide cost saving initiatives that WiseTech claimed had helped to deliver $22 million in gross cost reductions during the year.

Commenting on the result, WiseTech founder and CEO Richard White stated that “our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.”

Outlook

WiseTech is just as bullish about its prospects for FY22. The company forecasts annual revenue growth of between 18% and 25% (to between $600 million and $635 million) and EBITDA growth of between 26% and 38% (to between $260 million and $285 million). However, WiseTech does also note that the resurgence of COVID-19 variants in certain jurisdictions could pose a risk to those forecasts.

Recent moves in the WiseTech share price

The market reacted positively to WiseTech’s FY21 results announcement. On the day WiseTech released its results, its share price jumped over 28% higher. While the WiseTech share price hasn’t experienced any other single-day movements of that magnitude since, it has still trended higher overall in September, and is currently trading at $53.92 (as at the time of writing).

Motley Fool contributor Rhys Brock owns shares of AFTERPAY T FPO, Altium, Appen Ltd, and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a happy group of workers around a table raise their arms in the air as though celebrating a work achievement. One woman is on her feet with her arm raised in the air in a fist pumping action.
Share Gainers

Why 5E Advanced Materials, IAG, Magnis, and Woodside shares are pushing higher

These ASX shares are ending the week strongly...

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Here’s why the 5E Advanced Materials share price just rocketed 20%

Why is this materials share lifting today?

Read more »

A woman is excited as she reads the latest rumour on her phone.
Resources Shares

Obscure ASX mining share surges 29% following OZ Minerals copper deal update

Shareholders are set to vote on the proposal later this month.

Read more »

A man holding cup of coffee puts his thumb up and smiles while at laptop.
Share Gainers

IAG share price lifts despite mixed FY22 earnings results

The ASX financial share has caught a bid in morning trading.

Read more »

Happy miner with his arms folded.
Share Gainers

Up 52% since June, can the Pilbara Minerals share price extend gains?

Things are looking up for Pilbara Minerals shares right now

Read more »

jump in asx share price represented by man leaping up from one wooden pillar to the next
Share Gainers

Why has the De Grey share price leapt 36% in a month?

Investors have been sizing in since July.

Read more »

A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.
Share Gainers

Why did the Qantas share price fly higher today?

Increased demand for travel and cheaper oil prices are helping to propel this ASX airline share higher.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Block, Lake, Mirvac, and QBE shares are racing higher

These ASX shares are having strong days...

Read more »