The WiseTech Global Ltd (ASX: WTC) share price is having a tough finish to the week.
In afternoon trade, the logistics solutions technology company's shares are down 3% to $64.20.
Why is the WiseTech Global share price falling?
Investors have been selling the company's shares on Friday following the release of its annual general meeting update.
That update included a breakdown of the company's performance since its last meeting and its expectations for FY 2024.
In respect to the latter, management continues to expect strong revenue and earnings growth this financial year. The company's founder and CEO, Richard White, commented:
I am reconfirming our FY24 guidance. We expect to deliver 27% to 34% total revenue growth to between $1.04 billion and $1.095 billion, with CargoWise revenue expected to grow by approximately 34% to 43%. We expect to deliver 18% to 27% EBITDA growth equating to $455 million to $490 million.
This was in line with the guidance it provided with its FY 2023 results in August. However, this guidance now includes foreign exchange tailwinds and costs associated with small acquisitions.
As its previous guidance was before foreign exchange, the market appears to be treating this as a quasi-guidance downgrade, hence the weakness in the WiseTech share price today.
It may also be disappointed that the guidance range has not been narrowed. Goldman Sachs is expecting EBITDA of $480.6 million in FY 2024. However, at this stage, it is unclear whether the company will be hitting the low end ($455 million) or the high end ($490 million) of its guidance range.
Though, that should become clearer in February when the company releases its half-year results.
The WiseTech share price is up 16% over the last 12 months despite today's weakness.
