The WiseTech Global Ltd (ASX: WTC) share price has been a stunning performer on Wednesday.
The logistic solutions company's shares are the best performers on the S&P/ASX 200 Index (ASX: XJO) this afternoon with a 33% gain to $27.60.
At one stage the WiseTech Global share price was up as much as 37% to $28.46.
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Why is the WiseTech Global share price rocketing higher?
Investors have been fighting to get hold of the company's shares this morning following the release of its full year results.
For the 12 months ended 30 June 2020, WiseTech Global overcame COVID-19 headwinds to deliver a 23% increase in revenue to $429.4 million and a 17% lift in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $126.7 million.
This was driven by growth from both its CargoWise platform and newly acquired businesses. The CaregoWise platform delivered a 20% increase in revenue to $263 million and newly acquired businesses generated a 29% lift in revenue to $166.4 million.
But perhaps the biggest cause for celebration among shareholders was the company's guidance for FY 2021.
FY 2021 outlook.
At a time when many companies are not providing guidance due to the uncertain economic environment, WiseTech Global is not only offering guidance, but forecasting very strong growth over the next 12 months.
Based on a number of underlying assumptions, management currently anticipates FY 2021 revenue of $470 million to $510 million and EBITDA of $155 million to $180 million. This represents revenue growth in the range of 9% to 19% and EBITDA growth of 22% to 42%.
The company's CEO, Richard White, commented: "The COVID-19 challenges faced by the global logistics and supply chain sectors are accelerating the longer term trend towards consolidation and integration. Within this environment, we are seeing increased demand amongst large global logistics service providers for our technological and digital solutions that drive efficiencies and productivity improvements."
"WiseTech is ideally placed to address this growing demand, with our logistics execution technology and 40 development centres delivering seamless, global capabilities that improve productivity, functional depth, data integration and visibility, regulatory compliance and value for over 17,000 customers worldwide," he concluded.
