CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Why the WiseTech share price skyrocketed 53% on Wednesday

We look at the highlights from the tech company’s full-year FY21 earnings report.

Is the bear narrative done?

WiseTech (ASX: WTC) crushed expectations on Wednesday, reporting a strong set FY21 results, beating the company’s own EBITDA guidance in the process, while also providing an optimistic outlook for fiscal 2022.

The market reacted with a staggering amount of optimism: the stock skyrocketed 53% to $55.50 per share by 11:30 AM. At those price levels, WiseTech has a market capitalisation of over $18 billion.

Click here to read our beginners’ guide to fundamental analysis.

FY21 results

On the top-line, WiseTech reported total revenues of $507 million, representing an 18% year-on-year increase and coming in at the top-end of guidance. Most of that was driven by CargoWise revenue, which came in at $331.6 million, while acquisition revenue came in at $175.9 million. That bump in revenue from CargoWise was driven primarily by increased demand from current customers.

Commenting on that revenue performance overall, WiseTech CEO, Richard White, said:

'Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.'

Yet it was a beat on earnings (EBITDA) expectations that look to have truly captured the attention of the market. WiseTech, at its interim results, had guided for full-year EBITDA of between $165 million to $190 million. WiseTech beat firmly on those forecasts today, revealing FY21 EBITDA of $206.7 million, implying a year-on-year growth rate of 63% and an earnings margin of 41%.

This all resulted in statutory NPAT of $108.1 million, underlying NPAT of $105.8 million and earnings per share of 32.6 cents per share.

Off the back of this, WiseTech declared a final dividend of 3.85 cents per share – taking total FY21 dividends to 6.55 cents per share.

Analysts from Citi, who have a price target of $30.50 per share on WiseTech, described the result as solid, while noting that ‘guidance [was] stronger than expected.’

The investment bank went on to say that ‘With the company talking to a strong pipeline and guidance implying consensus upgrades, we are not surprised that the stock is up strongly today however do see the 27% increase as a bit excessive.’

FY22 outlook

Looking forward, WiseTech’s management said they expected full-year FY22 revenue of between $600 million to $635 million, implying a growth rate of between 18% to 25%, respectively.

On the bottom-line, earnings are expected to continue to accelerate, with full-year FY22 EBITDA guided to come in at between $260 million to $285 million, implying a growth rate of between 26% to 38%, respectively.

Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.