WiseTech shares tumble on earnings guidance

The news: WiseTech shares tanked by almost 20% after its earnings guidance undershot expectations and acquisitions continued to drag on margins.

The numbers: The market reaction came despite the logistics software company increasing profits 9% to $212 million on the back of strong growth in its flagship CargoWise business, which grew revenue 48% to $650 million.

The company provided forward guidance for a revenue growth range of 27%-34% for FY24, but its projected 18% to 27% EBITDA growth fell below expectations, the AFR reported. It declared a final dividend of 8.4 cents per share, up 31% on FY22. WiseTech shares traded at $70.07 at 11:00am AEST.

The context: WiseTech has been growing and diversifying its reach this year, acquiring Envase Technologies, Shipamax and Blume Global. WiseTech said integrating its acquisitions would continue to drag on margins but expected that to be ironed out by FY26.