Azzet reports on two ASX stocks with notable trading updates today.
Wisetech jumps on US acquisition update
Shares in Richard White-led Wisetech Global (ASX: WTC) were up over 5% at the open after the ASX 20 logistics giant updated on previously mooted plans to buy Texas-based logistics software company e2open (NYSE: ETWO) for $3.5 billion.
The total consideration includes around US$1.2 billion in equity and US$1.1 billion in assumed gross debt, offset by US$200 million in cash.
Confirmation that Wisetech plans to buy the leading provider of SaaS-based solutions in the global logistics value chain for $3.30 per share reaffirms White’s control of the company he founded following allegations of sexual misconduct that plagued him and the company last year.
The transaction – which consummates the company’s vision of evolving its operating system for global trade and logistics - will be fully debt funded from a new syndicated debt facility and is anticipated to be earnings per share accretive in year one.
With e2open shareholders already approving the transaction with written consent, the acquisition – subject to regulatory approvals - is expected to be completed in 1H FY26.
As well as accelerating WiseTech’s plans to create a multi-sided marketplace, the e2open acquisition is expected to expand WiseTech’s total addressable market (TAM) and customer base with a network of 500,000 connected enterprises in adjacent markets including:
- Connectivity to major ocean carriers, with around 5,600 customers.
- 250-plus blue chip customers.
Founded in 2000, e2open has operations in over 20 countries globally. It provides a connected supply chain software platform that enables companies to transform the way they make, move, and sell goods and services.
The cloud-based e2open platform connects more than 500,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 18 billion transactions annually.
Commenting on today’s update, White told investors that E2open brings WiseTech several well-established complementary products.
“This will enable WiseTech to create a multi-sided marketplace that connects all trade and logistics stakeholders to efficiently offer and acquire services, removing complex disconnected processes and driving visibility, predictability and cost savings through the value chain,” said White.
“In bringing the two companies together, we see tremendous opportunity for synergies, efficiencies, economies of scale and enhanced customer benefits, which unlocks the potential in e2open’s suite of products.”
Meanwhile, WiseTech’s earnings outlook for the 2025 financial year remains consistent with the guidance provided in its first-half results, with the exception of an estimated $40 million in one-off transaction costs to be recognised during the year.
Assuming the e2open buyout helps to restore market trust after the recent governance turmoil, brokerage upgrades on Wisetech may follow later this week.
Wisetech has a market cap of $35.2 billion making it the ASX’s 18th largest stock; the share price is up 6.8% in one year and down around 13% year to date.
The stock appears to be in a medium-term rally confirmed by multiple indicators.
Consensus is Moderate buy.
The stock is currently trading at $105.62.
Origin dips on weaker guidance
Shares in Origin Energy (ASX: ORG) were down around 5% at noon after it fine-tuned its energy markets earnings guidance, while also flagging a drag on income due to delays in its expected United Kingdom investment.
Earnings have narrowed to between $1.3-1.4 billion up from the originally forecast of $1,100 million and $1,400 million.
Management has attributed the narrowing of its FY25 energy market underlying earnings guidance [to the top end of its range] to operational improvements and wholesale portfolio benefits.
However, what appears to have unnerved investors today was a less-than-inspiring update on Origin’s Octopus Energy business.
Management now expects its share of Octopus Energy's FY25 underlying earnings to be a loss of up to $100 million – a complete reversal of the previous guidance of a positive contribution of up to $100 million.
What appears to be driving the lower FY25 guidance is unseasonably warm weather across March and April in the U.K., with the U.K. recording its third warmest April since 1884.
Other one-off impacts [under discussion] relate to the government's price guarantee subsidy from the energy crisis of 2022.
It’s understood that strong earnings from the company’s U.K. retail and Kraken businesses are offset by continued investment in Energy Services and non-U.K. retail markets.
Meanwhile, on a more positive note, Origin reports rapid growth across many of Octopus Energy's segments.
In the 12 months to 30 April 2025:
- U.K. retail grew organically by more than 10% to 7.5 million customers.
- Non-UK retail accounts doubled to 2.5 million.
Kraken now has around 74 million contracted accounts after recently securing its first major customer in the United States, National Grid.
Earlier this month, Origin announced an anticipated cut in its earnings per share from Australia Pacific LNG (APLNG) for the six months ended June 2025 after APLNG reduced prices on sales to China's Sinopec.
Origin Energy has a market cap of $18.1 billion making it the ASX’s 35th largest stock; the share price is up 1.5% in one year and down $3.50 year to date.
Origin's ratio of 13.36x is trading slightly below its industry peers’ ratio of 15.72x.
The stock’s appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Hold.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
