WiseTech share price tumbles 19% despite profit and dividend boost

The technology company reported on its full financial year results today.

| More on:
A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.

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 WiseTech Global Ltd (ASX: WTC) share price is down 18.8% in late morning trade on Wednesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock closed yesterday trading for $86.59 each. At the time of writing, shares are swapping hands for $70.29 apiece.

For some context, the ASX 200 is up 0.54% at this same time.

This comes as investors mull over WiseTech's financial results for the 12 months ending 30 June (FY23).

Read on for the highlights from the logistics software provider.

WiseTech share price slides despite dividend boost

What else happened during the year?

Clearly, these are some solid results.

So why is the WiseTech share price getting hammered today?

Well, as one of the top-performing ASX 200 shares this year, investors have some top expectations as well. And the 21% boost in earnings to $386 million fell short of consensus estimates. Guidance for FY24, which we'll look at below, is also positive, yet not quite what many investors had been hoping for.

However, WiseTech continued to perform quite well over the year.

Recurring revenue from its key CargoWise segment came in at $650 million, up 48% from the prior year. The company attributed this strong performance to existing and new customer growth, including new large global freight forwarder rollouts.

FY23 also saw WiseTech enter into North American landside logistics, acquiring Envase Technologies and Blume Global.

And the ASX 200 tech company signed its first global customs rollout with the world's largest freight forwarder, Kuehne+Nagel.

WiseTech ended the financial year with free cash flow of $291 million, up 23% from FY22.

What did management say?

Commenting on the results that have failed to lift the WiseTech share price today, CEO Richard White said:

I am proud to announce a strong FY23 financial performance, reflecting the expansion of our product offering, ongoing financial discipline and enhanced operating leverage as we further penetrate our chosen markets and execute our 3P strategy…

We have also accelerated our development capability over the year, growing our product development team from just over 1,000 team members at the beginning of FY23 to now over 1,800. This incredible growth means that 60% of our global team is now focused on accelerating our product development.

What's next?

Looking to what could impact the WiseTech share price in the year ahead, the company forecasts FY24 revenue of $1.04 billion to $1.10 million, equating to annual revenue growth of 27% to 34%.

EBITDA guidance of $455 million to $490 million equates to earnings growth of 18% to 27%.

White said:

Our goal is to drive innovation within the CargoWise ecosystem, so that it is a 'must have' for large global forwarders and logistics operators. Looking ahead, our strong balance sheet and cash generation provide us with significant financial firepower to fund our future growth.

WiseTech share price snapshot

Despite today's sizeable retrace, WiseTech remains one of the top-performing stocks on the ASX 200 in 2023.

Since the opening bell on 3 January, the WiseTech share price is up 35%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A group of business people in a board room hear the latest company report
Earnings Results

Key takeouts for ASX shares this earnings season: CBA analysis

Profits were weaker but plenty of dividends were splashed about this earnings season.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Earnings Results

Which ASX shares delivered the biggest profit jumps of the earnings season?

These companies revealed at least a 70% profit boost in their latest earnings reports.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Earnings Results

Why this ASX 300 share is leaping 14% despite being branded a 'sell'

Falling profits are putting investors off the fund manager.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Technology Shares

Life360 share price rockets 24% after smashing FY23 earnings expectations

This tech stock delivered a very strong result this morning. How strong was it?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

Two workers at an oil rig discuss operations.
Earnings Results

2 ASX energy shares going gangbusters on today's earnings results

The ASX energy shares are drawing investor interest today after releasing their half-year earnings results.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »