WiseTech (ASX: WTC) is killing it in 2022

Nick Sundich Nick Sundich, July 15, 2022

WiseTech (ASX: WTC) is attracting increased investor interest this morning after upgrading its guidance for FY22. The logistics software firm is still down over 20% this year, but gained as much as 10% this morning off the back of this announcement.    

 

WiseTech (ASX:WTC) (Graph: TradingView)

 

 

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WiseTech expecting >50% EBITDA Growth 

WiseTech previously told shareholders it expected $275-$295m in EBITDA for FY22, which would be 33-43% higher than FY21’s $206.7m. But this morning, it told shareholders it is expecting $310-$320m, which would represent 50-55% growth from FY21. The company left its revenue guidance of $600-$650m unchanged, but this would still be 18-25% higher than FY22.  

 

Is WiseTech on the way back  

Having listed at just over $3 back in 2016, shareholders in WiseTech who have held ever since, have been healthily in the green for some time. But the company has experienced some turbulence in recent years from a short-seller report to COVID-19 supply chain disruptions. The massive sell off in growth stocks in 2022 has been another one of them. 

Today’s share price movement may mark a turning point for the company, at least in respect of the selloff. It will be interesting to observe whether or not the company issues guidance for FY23 when it reports full year numbers.

 

It’s not a cheap stock

Consensus estimates for FY23 expect $751.5m in revenue and $364.2m in EBITDA, representing 20% and 15% growth respectively from its FY22 guidance. However, investors should be aware that WiseTech is trading at high multiples of 37.1x EV/EBITDA and 64.1x P/E, making it overly vulnerable to another selloff if EBITDA growth disappoints going forward. 

 

 

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