Logistics software and technology stock WiseTech Global [ASX:WTC] shares rose on Friday after it updated its forecast for FY22.
The WTC now expects FY22 revenue to be at the upper end of its indicative range of $600 million to $635 million.
The FY22 EBITDA guidance range has now increased from $275-295 million to $310-320 million.
WTC shares are up 45% in the past 12 months, however, the stock is down 25% since the start of the year.
WiseTech global provides enhanced guidance
As other stocks issued downgrades amid macro uncertainty, WiseTech surprised the market with an improved EBITDA forecast.
WiseTech now expects its FY22 revenue to hit the high end of its estimated guidance range of $600 million to $635 million.
But the biggest revision was to WTC’s FY22 EBITDA.
FY22 forecast EBITDA decreased from $275-295 million to $310-320 million.
EBITDA upgrade reflects ‘strong revenue growth and cost savings above expectations.’
The revised range means the WTC expects FY22 EBITDA to increase 50% to 55% on FY21 EBITDA of $206.7 million.
Richard White, Founder and CEO of WiseTech, said:
‘We are improving our guidance for FY22, with our performance reflecting the resilience of WiseTech’s business model and strategy through the cycle.
‘Our product-driven approach and focus on our 3P strategy has allowed us to continue to deliver strong top line growth and generate significant operating leverage. We look forward to updating the market further on our full year results.’
More information on the company’s annual results is expected to be released on August 24.
WTC Share Price Outlook
In May, at the Macquarie Bank conference, WTC CEO Richard White said blockages in China had had no impact on cargo bookings, while the Russian-Ukrainian war offered the business opportunities to leverage its logistics services.
As the Australian Financial Review then reported:
‘Russia’s invasion of Ukraine has pushed logistics providers to abide by global restrictions aimed at facilitating bulk Russian exports, but Mr White said supply chain digitization was starting to keep up with the momentum of geopolitical demands.
“Logistics supply chains are becoming very resilient and can cope with issues like this,” he said.
WiseTech has become the go-to software provider for logistics giants such as DHL and FedEx as they grapple with digital disruption to global supply chains, limited capacity, cost increases and demand growing.
Its CargoWise One product, which gives freight companies visibility into their networks, systems and interactions with ports in more than 160 countries, has boosted the company’s profitability and boosted its stock price.
Apart from logistics stocks, what other stocks offer long-term investment opportunities?
Thanks to the global transition to a future dominated by electric vehicles, there is a strong demand for materials like lithium, copper, nickel, cobalt and graphite.
And while lithium stocks have entered a deep correction after posting sky-high valuations, our team of silver morning thinks there’s a smarter way to play the battery tech boom.
The smarter way involves what you might call lithium’s little brother. View the report here.
For silver morning