The WiseTech Global Ltd (ASX: WTC) share price is holding steady after it announced that its earnings forecast for FY21 is largely intact, providing the same level of guidance that it did in August.
In early morning session, the WiseTech share price is trading at $30.95, up slightly by 0.36%.
WiseTech’s FY21 guidance
WiseTech advised that its full year revenue for FY21 would be $470 million to $510 million, representing growth of 9% to 19% from prior year. This is the same level it had previously forecast during its August guidance.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) will be $155 million to $180 million, a growth of 22% to 42%.
WiseTech’s supply management software CargoWise will contribute a recurring revenue market share growth of 15%-30% as a result of large customer roll-outs and new customer wins.
The company says its acquisitions are now completed, and their full year contribution is expected to be $12 million.
The company will also make cost reduction of $10 million in FY21, and expects this to be in the range of $20-$30 million in FY22.
More about WiseTech
WiseTech develops cloud-based software solutions for the international and domestic logistics industries, and has more than 12,000 customers using its software across 150 countries.
The company is part of the so-called WAAAX, a group of Australia’s fastest growing technology companies. Including WiseTech, the WAAAX companies are Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), and Xero Limited (ASX: XRO).
More recently, WiseTech struck a partnership with the payment specialist company OFX Group Ltd (ASX: OFX). Under the partnership, WiseTech’s supply chain software company will use OFX as its preferred provider for international payments.
How did the WiseTech share price perform in 2020
For the 12 months ended 30 June, WiseTech delivered a 23% increase in revenue to $429.4 million. This was driven by a combination of acquisitions and its core CargoWise offering. CargoWise recorded revenue of $263 million, up 20% on FY 2019.
The WiseTech share price has increased by more than 30% in 2020, reflecting its strong performance during the year. At the current market price, the company commands a market value of almost $10 billion.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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