News – AU – WiseTech (ASX: WTC) share price jumps 9% after strong half-year result

For a limited time, The Motley Fool Australia is releasing an urgent new investment report detailing our 5 favorite stocks for investors over 50. Every company has strong growth prospects for the next 3 to 5 years and most importantly, every company pays one generous (and fully franked) dividend! So if you want to get your finances in order and are in or about to retire, you’ve come to the right place!

ASX 200 | A B C D E F G H I J L M N O P Q R S T U V W X

James Mickleboro | 24 February 2021, 10:19 am | More on: WTC

In morning trading, the share price of WiseTech Global Ltd (ASX: WTC) rises after the publication of a solid half-year result

In the six months to the 31st December WiseTech saw sales grow 16% to $ 238 million

This was due to a 12% increase in acquisition revenue to $ 887 million and a 19% increase in CargoWise revenue to $ 150 million. Management notes that the latter is driven by increased customer usage of the CargoWise platform reflects

Another positive is that organization-wide efficiency initiatives, including synergies from acquisitions, brought in $ 6 million in cost savings during half

These and operational leverage helped drive half-year earnings before interest, taxes, depreciation, and amortization (EBITDA) 43% to $ 892 million. The bottom line was that ultimately, WiseTech saw underlying net income increase 61%. to 43 USD recorded 6 million

The potential to boost WiseTech stock price today was also strong free cash flow, which was $ 48, up 74% over the corresponding period last year 7 million

Given this and its strong balance sheet ($ 251 million in cash), the WiseTech board of directors declared a fully prepaid interim dividend of 27 cents per share

Management announced that its strategic investment (through in-house research and development and acquisitions) is driving CargoWise’s revenue growth and market penetration

It should be noted that this will result in geographic expansion, the addition of new features and products, and increasing momentum in the number of CargoWise customer rollouts worldwide

Since 1 January 2020 there were eight new registrations including Aramex, Hellmann, Deugro, CEVA Logistics, A Hartrodt, Freight Partner, Seafrigo Group and Hankyu Hanshin Express

Richard White, Founder and CEO of WiseTech, commented, “Despite the subsequent waves of COVID-19 in key markets, our business continued to deliver solid sales and EBITDA growth in the first half of 21”

“Our strategic focus on ‘Product, Penetration and Profitability’ has enabled us to continue expanding the CargoWise ecosystem, increasing our market penetration January 2020 sign eight new global client rollouts and achieve 61% growth. The underlying NPAT shows the gradual change in operational leverage we are achieving by extracting acquisition synergies and implementing organization-wide efficiency gains ”

The WiseTech share price also received news today that management has improved its earnings guidance for the full year

It was noted that this upgrade reflects the expected benefits of operational leverage as the company continues to execute its organization-wide efficiency initiatives and achieve acquisition synergies

The company has confirmed its revenue forecast of $ 470 million to $ 510 million, an annual growth rate of 9 to 19 percent

EBITDA is now expected to be between 165 and 190 million US dollars. This corresponds to a growth of 30% to 50% over the previous year. Previous forecasts were a growth of 22% to 42%

Mr. White commented: “The pandemic has given the impetus to accelerate the longer-term structural change towards the consolidation, integration and digitization of global logistics and supply chains. The recently announced planned takeover of Kerry Logistics by SF Holdings and the public comments from DSV to his increased appetite for M&A after the successful acquisitions of UTi and Panalpina are evidence of this trend ”

“We see an increasing demand among large global logistics service providers for our CargoWise offer, whereby the registrations for the worldwide CargoWise roll-outs are accelerating”

“Looking to the future, we will continue to innovate through our ongoing product development program to provide a seamless, global logistics technology solution that improves productivity, functionality, data integration and cross-border regulatory compliance for customers. A particular focus is on alignment the 25 largest global freight forwarders and the 200 largest global logistics providers, ”he concluded

If investment expert Scott Phillips has a stock tip, it may be worth listening to. After all, the Motley Fool Share Advisor’s flagship newsletter, which it has operated for more than eight years, has offered thousands of paying members stock choices that have doubled, tripled or even more has *

Scott just announced what he thinks are the top five ASX stocks that investors can buy right now. These stocks trade at dirt cheap prices, and Scott thinks they are great buys right now

James Mickleboro, a contributor to Motley Fool, has no position in any of the stocks mentioned The Motley Fool Australia owns shares in WiseTech Global The Motley Fool has a disclosure policy This article provides general investment advice only (under AFSL 400691) Authorized by Bruce Jackson

In this FREE SHARE REPORT, Scott Phillips just revealed what he thinks are the 3 ASX stocks for the post-COVID world that investors should buy now while they still can

fool-ecap-fool-ecap-ID-19 fool-ecap-type-vanilla {background: # fff7c4;} aside section fool-ecap-ID-19 fool-ecap-type-vanilla h3 {font size: 16em;} pecap disclaimer {Font size: 06em! Important;} divNarren-EcapNarr-Ecap-ID-19-Form {position: relative; Text alignment: center; Rand: 2em 1em;} fools-EcapNarr-Ecap-ID-19 pecap disclaimer {margin-left: 0px;} fools-EcapNarr-Ecap-ID-19 via email {margin-below: 0px; Text alignment: middle;} divNarren-EcapNarr-Ecap-ID-19 p {color: # 464646;} fools-Ecap-Typ-VanilleNarr-Ecap-ID-19 h3 {color: # 404040; Advertisement: Block! important;} fool-ecap-type-vanilla-fool-ecap-ID-19 ecap-disclaimer {color: # 484848! important;} Narr-Ecap-ID-19Narr-Ecap-Typ-Vanille h3Titel {Display: none! important;} Fool-EcapNarr-Ecap-ID-19Fool-Ecap-Type-Vanilla {margin-below: 10px;} Fool-Ecap-Type-VanilleNarr-Ecap-ID-19 input [Type = “Send”] {margin: 5rem 0 5rem! Important;} fools-ecap-fool-ecap-id-19 img {display: inline;}

By clicking this button, you are agreeing to our Terms of Use and Privacy Policy We will only use your email address to keep you informed of updates to our website and about other products and services that we believe may be You may be interested. You can unsubscribe at any time. For more information, see our Financial Services Guide (FSG)

This service provides general, non-personalized, financial advice only and has not taken your personal circumstances into account The Motley Fool Australia operates at AFSL 400691 For more information, please see our Financial Services Guide Please keep in mind investments can go up and down in performance Past is not necessarily an indication of future returns The Motley Fool Australia does not guarantee any performance or return on any investment

WiseTech Global, ASX: WTC, earnings before interest, taxes, depreciation and amortization, sales, ASX