Stock of the day: WiseTech Global
WiseTech Global reported a 28% revenue increase to $1.04 billion and a 24% rise in net profit to $263 million, driven by strong CargoWise performance.
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This video was created on 21 August for IG audiences by ausbiz.
Stock of the day: WiseTech Global (ASX:WTC)
WiseTech reports impressive growth
Wisetech Global, the logistics software maker, reported a 28% increase in full-year revenue, reaching $1.04 billion, while net profit rose by 24% to $263 million. The company's flagship product, CargoWise, contributed significantly, with a 33% revenue increase.
WiseTech announced plans to launch three new products in the first half of the financial year and declared a final dividend of 9.2 cents per share, up 10% from the previous year. The company is forecasting revenue between $1.3 billion and $1.35 billion, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth expected to range from 33% to 41% this financial year.
Following these results, WiseTech's shares hit a record high, surging 16% today.
Market reaction and investment outlook
Analysts are impressed by Wisetech’s growth and the strong performance of CargoWise. Despite the recent price increase, which saw shares jump from $83 to over $110, experts suggest holding the stock for now, with a recommendation to buy during any future market dips.
WiseTech’s continued innovation, as evidenced by its upcoming product launches, positions it well for sustained growth in the logistics software market.
Long-term potential amid high valuation
While Wisetech's current price-to-earnings (P/E) ratio is high, at 94 times earnings, the company’s consistent delivery on growth targets makes it a quality investment.
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