The WiseTech share price will be on watch this week…
The post What happened to the WiseTech (ASX:WTC) share price last earnings season? appeared first on The Motley Fool Australia. –
The WiseTech Global Ltd (ASX: WTC) share price will be one to watch this week when it hands in its full year results.
Shareholders will no doubt be hoping that the market reacts as positively to its full year result as it did to the company’s half year results.
In February, the WiseTech share price jumped 9% during intraday trading following its release.
What happened last time it released earnings?
For the six months ended 31 December, WiseTech reported a 16% increase in revenue to $238.7 million. Management advised that this was driven by a 19% lift in CargoWise revenue to $150 million and a 12% increase in acquisition revenue to $88.7 million.
Thanks to organisation-wide efficiency initiatives and operating leverage, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased at an even stronger rate of 43% to $89.2 million.
And finally, on the bottom line, WiseTech revealed a 61% jump in underlying net profit after tax to $43.6 million.
WiseTech’s Founder and CEO, Richard White, commented: “Notwithstanding the subsequent waves of COVID-19 in major markets, our business has continued to deliver solid revenue and EBITDA growth in 1H21. Our strategic focus on ‘Product, Penetration and Profitability’ has enabled us to continue to expand the CargoWise ecosystem, increase our market penetration, with eight new global customer roll-outs signed since 1 January 2020 and deliver 61% growth in Underlying NPAT, demonstrating the step change in operating leverage that we are achieving by extracting acquisition synergies and implementing organisation-wide efficiencies.”
What else happened?
Also getting investors excited and giving the WiseTech share price a boost was its guidance for the full year.
The company reaffirmed its revenue guidance of $470 million to $510 million, which represents annual growth of 9% to 19%, but lifted its EBITDA guidance. The latter is now expected to be in the range of $165 million to $190 million. This represents year on year growth of 30% to 50%. Previous guidance was for growth of 22% to 42%.
Is the WiseTech share price good value?
Late last month analysts at Credit Suisse upgraded WiseTech shares to an outperform rating with a $34.00 price target. However, since then, the WiseTech share price has surpassed this price target and is currently fetching $36.72.
This could be an indication that investors are expecting an impressive result from the company later this week.
Should you invest $1,000 in WiseTech right now?
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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. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.