Australia's top software firm WiseTech slumps 10% on annual profit miss
Australia's top software firm WiseTech slumps 10% on annual profit miss Aug 26 (Reuters) - Australia's WiseTech Global WTC.AX reported annual profit below market estimates on Wednesday, as acquisition-related interest and amortization costs tied to the e2open acquisition weighed on results, sending its shares more than 10% lower.
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Shares of the logistics software provider fell as much as 10.3% to A$40.8, dragging the benchmark AX200 .AXJO down 0.3% and the tech sub-index .AXIJ 3% lower.
WiseTech said its acquisition of U.S.-based cloud computing firm e2open weighed on annual profit, as interest and amortisation expenses associated with the deal reduced statutory earnings.
Australia's largest technology company by market value posted a statutory net profit after tax of $178.7 million for the year ended June 30, missing Visible Alpha (VA) consensus of $181.9 million, according to a Jefferies note.
CargoWise, the firm's top money-making arm, also fell short of the VA estimate by 0.7%.
In early August, the company completed the acquisition of e2open for an enterprise value of $2.1 billion.
(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Rashmi Aich)
((Aamir.SheikKhalid@thomsonreuters.com;))