WiseTech shares drop 17% on earnings miss. Emanuel Datt explains margin strength and why high-growth stocks react with volatility.
~1 min. read
By: Emanuel Datt, Principal
WiseTech Global (ASX: WTC) saw its share price fall by as much as 17% after releasing its FY25 results. The market was disappointed with both earnings and guidance, even though the company reported solid revenue growth and improved margins.
The results at a glance:
Despite growth across key lines, investor expectations had been set higher. That gap between market forecasts and reported results explains the sharp reaction in the share price.
One of the brighter spots in the result was profitability. Underlying EBITDA margins expanded to 53%, while statutory margins rose to 49%. This highlights the efficiency of the underlying business, even as top-line growth fell short of consensus.
Commenting on the result, Datt Capital’s CIO Emanuel Datt observed:
“Margin expansion on revenue growth.”
“Margin expansion on revenue growth." - says Emanuel
He added that high-beta, richly-valued stocks like WiseTech are particularly sensitive to expectation gaps. When valuations are elevated, even a small miss on earnings or guidance can trigger outsized volatility. This dynamic explains why WiseTech sold off so sharply despite maintaining strong margins.
WiseTech’s $3 billion acquisition of e2open represents a major growth initiative, but it also brings integration and execution risk. For now, Emanuel maintains a Hold view: margins are supportive, but the market’s reaction reflects the challenges of investing in growth stocks priced for perfection.
Read the full Livewire feature here: WiseTech tanks 17% on earnings miss but margins shine
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© COPYRIGHT 2025. ALL RIGHTS RESERVED.
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