Australian (ASX) Stock Market Forum

WTC - WiseTech Global

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WTC popped up on my scan the other day as I was looking at stocks in stronger sectors (Information Technology / Software ) and today WTC broke through some resistance @ $28 which should see a HH generator soon. Volume is not huge but is distorted a bit on the charge by the huge bar in November

not held

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What is a HH generator if you don’t mind explaining Trav?
I got into this stock on the last day of last year @$23.38, gone sideways until the last week or so.
 
Higher high

probably didn't help that i spelt generated incorrectly, just gives a bit of an indication of price trending higher
 
Trav. said:
Higher high

probably didn't help that i spelt generated incorrectly, just gives a bit of an indication of price trending higher
Click to expand...

Thanks Trav. I did assume higher high, but was wondering if a HH generator was some sort of tech tool.
Appreciate the response.
 
You'd expect an outfit like WTC, involved as it is in international logistics and customs clearance, to be hit with China in a pickle. And it has.
WiseTech Global said it expects full-year revenue of between $420 and $450 million, an increase of 21 to 29 per cent on 2019. It expects full year earnings (EBITDA) of between $114 million to $132m, an increase of between 5 and 22 per cent on last year.

Previously, the firm guided to revenue of $440 million to $460 million and EBITDA in a range of $145 million to $153 million for the year.
Click to expand...
Down some 20%
 
ASX 19/02/2020 10:18:22 AM 9 WTC continued strong growth, revenue up 31%, EBITDA up 29%

26353 trades $61 million todate!!

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Page 9 of this asx announcement today
19/02/2020 10:18:22 AM WTC continued strong growth, revenue up 31%, EBITDA up 29% (uploaded)

Outlook FY20
WiseTech Global Founder and CEO, Richard White, said “The predicted early 2020 recovery from the end of 2019 trade volume softness within the logistics industry (as a result of US-China trade war), was in effect in early January. However, the unexpected outbreak of coronavirus (COVID-19) and the effective shutdown of China, a critical driver of the global manufacturing supply chain and a ~16% contributor to global GDP, is creating negative flow-on effects to manufacturing, slowing supply chains and economic trade across the world. While we have a diversified array of revenue drivers that provide resilient organic revenue growth across our global platform, we do anticipate that the manufacturing slowdown will delay execution of logistics activities by logistics service providers.”

“The speed of recovery of China manufacturing, replenishment of inventories worldwide and restoration of supply chain volumes, once started, will likely create a significant rebound in volumes and logistics transactions, however, the interim delay may cause some transactional revenues to move into the next reporting period and potentially delay the launch of new products planned for 2H20.”

“Despite this, what has not changed throughout this period is the accelerating adoption and continued rollout of the CargoWise solution among our customers. While these short-term challenges represent immediate headwinds for industry and the world economy, they in no way diminish the rising demand drivers for our platform among logistics providers. Our success has been founded on a long-term focus and strategy which has enabled us to make deep investments to cement our technology and product leadership. We will continue to focus on delivering on our five levers of growth as we build the operating system for global logistics.”

“We have delivered strong progress in 1H20 across our technology and operations, which will create long-term value for our shareholders, and we will continue to drive the business through 2020 and beyond in the uncompromising execution of our strategy.”
 

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Latest earnings : up 28%. Latest gossip : CEO Richard White to offload a few more shares. $ 100 Million worth, in fact. And good on him, too.
It's only less than 1 % of the Wise Tech register. The poor guy's timing is a bit better, this time, however. About a year ago, he sold less than 2 % for $ 165 Mill. With the S.P 60 % higher today, he could have made $ 118 Million more. The billionaire tech founder still retains over 40 % of his company's shares.
 
good results:
  • profit surging 80 per cent to $194.6 million.
  • EBITDA of $319 million, up 54 per cent on the previous year (top end of guidance)
  • revenue was also at the top end of its $600 - $635 million guidance range, coming in at $632.2 million – up 25 per cent.
  • signed 10 new global customers to its flagship CargoWise software platform in the 2022 financial year, including UPS, FedEx and Access World.
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WiseTech Global plunges 20pc​

Shares in the global logistics software company dived after its earnings guidance was lower than expected and acquisitions squeezed its margins.
  • Revenues rose to $819.8 million, but its EBITDA margin was squeezed.
  • WiseTech lifted its dividend 31 per cent to 8.4¢
... was close to $90, now below $70
 
An over reaction by the market? I don't know, i'm probably talking through my wallet...
EBITDA margin lowered , true, however,

Underlying NPAT up 30%
Underlying EPS up 30%
FCF up 23%
 
One of my picks for the 2024 comp.

Since the end of October it has tracked well following the big sell off at the end of August.

I think it is a quality growth stock.
 

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