The WiseTech Global Ltd (ASX: WTC) share price has been an incredible performer recently, up 80% in 2024 to date and more than 100% in the past 12 months. On Friday, shares in the ASX tech company hit a new 52-week high of $136.02.
The S&P/ASX 200 Index (ASX: XJO) has done well, but WiseTech has done much better. To date, in 2024, the ASX 200 has risen by 9% and is up around 17% in the past year.
Investors are loving the global progress that the ASX tech share is making.
Profit growth is a key driver of share prices over time and I think the recent FY24 result from the ASX tech share was excellent, which helped drive the WiseTech share price.
FY24 earnings recap
In the 12 months to 30 June 2024, total revenue increased by 28% to $1.04 billion, with CargoWise revenue increasing 33% to $880.3 million. It benefited from the full and part-year effect of acquisitions during FY23 and FY24, as well as customer growth, including new large global freight forwarder rollouts.
WiseTech's operating profit (EBITDA) grew by 28% to $495.6 million, underlying net profit increased by 15% to $283.5 million, and statutory net profit grew by 24% to $262.8 million.
It has been working on a company-wide cost efficiency program, which has achieved its goal and delivered $40 million annual run-rate savings with a $14 million annual cost cut in FY24. The program has been expanded with an updated target of $50 million annual run-rate savings.
Excitingly, the business also revealed expectations of further strong revenue growth in FY25, which may be a key reason for the recent performance of the WiseTech share price. In the 2025 financial year, the company expects revenue to rise by between 25% and 30% to between $1.3 billion and $1.35 billion.
It also predicted that profit margins would increase in FY25. Operating profit (EBITDA) is expected to rise by between 33% and 41% to $660 million to $700 million, with the EBITDA margin forecast to reach between 51% and 52%.
Where could the WiseTech Global share price be in 12 months?
Analysts have differing views on where they think the WiseTech share price will be in a year.
Currently, according to Factset, there are four buy ratings on WiseTech shares and 11 hold ratings.
Of those ratings, the average price target is $117.38, which implies a possible decline of approximately 13% from the valuation today. The most pessimistic price target is $100, which would represent a whopping 26% decline over the next year.
The highest price target is $38, which implies the WiseTech share price could increase by 2.1%. Overall, analysts don't appear to think there is much upside in the short term for the high-performing ASX tech share. However, stronger-than-expected profit growth could help push up the valuation.
