WiseTech share price leaps 7% higher following upgraded guidance

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The WiseTech Global Ltd (ASX: WTC) share price is leaping higher today.

This comes after the company just dropped upgraded its latest release revealing an upgraded guidance for the 2022 financial year.

At the time of writing, shares in the logistics solutions company are up 7.22% at $45.75.

What did WiseTech announce?

The WiseTech share price is on the move today after the company reported a positive update on the ASX.

In its release, WiseTech advised that it expects FY22 revenue to be at the top end of its $600 million to $635 million guidance range. This represents a growth of 18% – 25% on FY21’s revenue of $507.5 million.

In addition, the FY22 EBITDA range received a bump up from its previous guidance of $275 million to $295 million.

Due to strong top line growth and cost efficiencies, FY22 EBITDA is now forecasted to be between $310 million and $320 million.

When comparing against the $206.7 million achieved in FY21, this reflects a sizeable increase of around 50% – 55%.

The company stated that it will release its full year audited results on 24 August 2022.

Management commentary

Richard White, founder and CEO of WiseTech, touched on the company’s result, saying:

We are upgrading our FY22 guidance, with our performance reflecting the resilience of the WiseTech business model and strategy through the cycle.

Our product led approach and focus on our 3P strategy has enabled us to continue to deliver strong top line growth and drive significant operating leverage.

About the WiseTech share price

Over the past 12 months, the WiseTech share price has gained 40% despite moving in circles throughout the year.

Market volatility amid soaring inflationary movements and rate hikes appears to have weighed on the company’s shares.

During June, the company’s shares fell to a near 52-week low of $34.11 before quickly rebounding in the following weeks.

It’s worth noting that WiseTech shares are 30% off their all-time high of $60.40 reached in December 2021.

The company commands a market capitalisation of roughly $13.59 billion.

The post WiseTech share price leaps 7% higher following upgraded guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 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.

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