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WiseTech Global Ltd Plummets 27% On The Back Of Full Year Guidance Downgrade

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Shortly after market open this morning, Australian software company WiseTech Global Ltd (ASX: WTC) produced their first half FY20 financials for the period ending December 31, 2019. The company reported revenue growth of 31% and EBITDA growth of 29%. Moreover, WTC announced a fully franked interim dividend of 1.70 cents per share.



Australian software company WiseTech Global Ltd (ASX: WTC) plummeted 27% today after downgrading their full year EBITDA guidance 14%. As a result, WTC was the worst performer in the ASX 200 today. (Credit: Whale Logistics Australia).


However, one highlight of the announcement which caught investors’ eyes was the full year guidance for FY20. Founder and CEO Richard White announced that the company would revise their revenue and earning guidance, subject to:

the potential impact of COVID 19 on manufacturing and export trade… the power of the CargoWise platform, drivers of organic growth, annual customer attrition rate of less than 1%.

Consequently, WTC downgraded their FY20 revenue guidance from million to $450 million and their EBITDA guidance from $153 million to $132 million, the latter of which is a 14% downgrade.

As expected, the market reacted unfavorably to the guidance, selling off the stock hard. The company’s stock is now selling for around $21.40 per share, down 27% from the $29 it was trading for at market open. The fall represents the company’s largest one-day drop since floating back in April 2016 and wipes out nearly a years’ worth of gains. WiseTech Global Ltd was the worst performing stock in the ASX 200 today.



This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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