WiseTech (ASX:WTC) share price rose 58% before being halted. What's next?

What does WiseTech have planned for the year ahead?

| More on:
a man sits on a rocket propelled office chair and flies high above a city

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The WiseTech Global Ltd (ASX: WTC) share price catapulted higher this morning after releasing its FY21 full-year results.

At one point, shares in the cloud-based logistics software company were up ~58% to a new all-time high. This was driven by an impressive performance in FY21. For starters, net profit doubled to $105.8 million on revenue of $507.5 million.

However, the party was temporarily brought to a standstill around lunchtime after WiseTech entered a trading halt. Since then, the WAAAX constituent has responded to an ASX price query and resumed trading.

This leaves us to discuss what WiseTech has in store for FY22.

What's next on the WiseTech share price?

While WiseTech clearly has been busy over the past year, it is important to remain forward-looking as investors. For that reason, let's recap some of the details that concern the road ahead for Wisetech.

According to its results, the logistics software company remains focused on its long-term strategy. This is grounded in the "3P's" which are product, penetration, and profitability.

WiseTech has been known for its "growth through acquisition" approach in the past — with 39 acquisitions since its initial public offering (IPO) in 2016. However, the company noted that it intends to slow its near-term acquisition activity down and be more intentional with expanding its CargoWise ecosystem.

This could be a positive for the WiseTech share price, depending on which way you look at it. The company might be able to redirect those funds to either further product development, marketing, or simply increasing profitability.

Furthermore, the pipeline of new global customers is said to be strong. These potential customers are being actively pursued. Additional customer wins are key to WiseTech achieving its target of being among the top 25 global freight forwarders and top 200 global logistics providers.

In regards to profitability, an organisation-wide efficiency and acquisition synergy extraction program will continue into FY22. The program has already delivered a $13.8 million net benefit, exceeding its $10 million target

In fact, Wisetech expects it is on track to achieve a cost reduction run-rate of ~$40 million for FY22. This would eclipse its previous $20 to $30 million.

Guidance for FY22

Despite ongoing supply chain disruptions, WiseTech anticipates another solid year of growth in FY22. According to its provided guidance, revenue is expected to increase 18% to 25% in FY22. Meanwhile, things look even more appealing for earnings before interest, tax, depreciation, and amortisation (EBITDA), expected to rise 26% to 38%.

Commenting on the drivers for further growth ahead, WiseTech Founder and CEO Richard White said:

We are benefitting from the acceleration of the longer-term structural changes that they are driving. In particular, we are seeing consolidation within the sector and increased investment in replacing legacy systems with integrated global technology, such as CargoWise, that drives productivity and facilitates planning, visualisation and control of global operations.

Based on the WiseTech share price, the company now commands a market capitalisation of $14.86 billion.

Should you invest $1,000 in Adore Beauty Group Limited right now?

Before you buy Adore Beauty Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Adore Beauty Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX stock just rocketed 21% on takeover news

Investors are piling into the ASX stock following a confirmed takeover offer.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Technology Shares

What does Macquarie think Xero shares are worth?

Does the broker see value in this tech stock? Let's find out.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

How much upside does Macquarie tip for Light & Wonder shares after its result?

Let's see what the broker is saying about this tech stock.

Read more »

Business people discussing project on digital tablet.
Technology Shares

Guess which ASX 200 stock is down 4% following Q3 update

Let's see what is causing investors to hit the sell button today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 14% on results day

This tech stock is having a rough time today. But why?

Read more »

Data Centre Technology
Technology Shares

Is it too late to buy NextDC shares?

NextDC's share price has surged over the last couple of weeks. Will it continue?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 25% following an update

This tech stock is being sold off on Wednesday. But why?

Read more »