Why is the WiseTech share price ending the week in the red?

This tech stock is under pressure on Friday. But why?

| More on:
A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.

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 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.

Motley Fool contributor James Mickleboro 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 Goldman Sachs Group and 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 Technology Shares

A man slumps crankily over his morning coffee as it pours with rain outside.
Earnings Results

EML share price sinks on $12m half-year loss

EML grew its top line strongly but reported a loss after tax.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Technology Shares

Guess which ASX tech stock crashed 29% on its half-year results

Investors haven't responded positively to this results release.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Technology Shares

Guess which ASX 200 stock hit a record-high on 'strong' half-year result

This data centre operator delivered a strong result according to analysts.

Read more »

A man looks stunned as a cloud explodes from his head representing the CogState share price crashing today in
Earnings Results

Brainchip share price crashes 23% following another year of losses for ASX AI chipmaker

ASX AI chip maker Brainchip is under heavy selling pressure after releasing its 2023 results.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Technology Shares

4 ASX tech shares tumbling on results releases

These ASX tech stocks are taking a dive on Tuesday. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Appen share price tumbles amid ongoing losses for the ASX AI stock

Investors are selling Appen shares following the ASX AI stock’s full-year results.

Read more »

A tattoed woman holds two fingers up in a peace sign.
Technology Shares

Guess which small cap ASX stock hit a 52-week high amid stellar half-year growth

This online retailer had a strong first half.

Read more »

Woman and man calculating a dividend yield.
Technology Shares

Buying Xero shares? Here's what to expect from this week's update

Xero's inaugural investor day event is taking place this week.

Read more »