2 Beaten Down IT Stocks – WTC And APX

3 min read | December 29, 2018 12:53 AM EST | By Team Kalkine Media

Both the companies have shown healthy financial growth, but still, the stock performance of these stocks in the last six months is not that great. These stocks have shown positive results due to which investors are interested in these stocks.

WISETECH GLOBAL LIMITED

WiseTech Global Limited (ASX:WTC) is a software company which provides its services to the logistics industry globally. The company was listed in 1994 and listed in 2016.

In FY18, the company generated the revenue of $221.6 Million, which represents a 44% growth as compared to the previous year. EBITDA for the year came in at $78 million, which represents a 45% growth as compared to the previous year. The geographic expansion, relentless innovation, and deepening product capability, and global data sets are the major contributors in both revenue and EBITDA. Over the last sixty months, the company has quadrupled their revenue, EBITDA, and their global workforce while investing $222 million in their innovation pipeline, by adding over 3000 product enhancements to its global platform and undertaking more than 28 acquisitions across Asia, Africa, Europe, Latin America, Australia, and North America.

For FY19 outlook, the company expects revenue and EBITDA in the range of $320M - $333M and $102M - $107M respectively. The main reason for anticipation is that the company will launch a new product and feature in the market, and new customer growth will be consistent with historical levels. The company will increase the investment in R&D in $ terms, which will be benefited from operating leverage.

Meanwhile, the share price of the company plunged by 8.75 percent in the last six months as on 24 December 2018. WTC’s shares traded at $16.560 with the market capitalization of $4.71 billion as the company has witnessed a high-quality growth in the year.Â

APPEN LIMITED

Appen Limited (ASX:APX) is a software company which develops high-quality, human-annotated datasets for machine learning and artificial intelligence.

In FY17, the company generated the revenue of $166.6 Million, which represents a 50% growth as compared to the previous year. Underlying EBITDA for the year came in at $28.1 million, which represents a 62% growth as compared to the previous year. After transaction costs of $5.9 million, the statutory EBITDA was $2.2 million. The underlying EBITDA margins continued to improve, from 15.6% in 2016 to 16.9% in 2017. Underlying NPAT reached $19.7 million, which represents an 86% growth as compared to the previous year. After transaction costs, statutory NPAT was $14.3 million. Appen maintains a strong balance sheet, with end-year cash of $24 million.

For FY18, the company expects a sharp increase in monthly revenues, largely from existing projects from existing customers. The underlying EBITDA is anticipated to lie between the range of $62 million to $65 million. The company’s full-year earnings are susceptible to upside or downside factors including timing of work from major customers and Australian dollar fluctuations

Meanwhile, the share price of the company plunged by 11.82 percent in the last six months as on 24 December 2018. APX’s shares traded at $12.560 with the market capitalization of $1.34 billion.


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