Investing.com — Stocks Wise (LON:) PLC rose more than 5% on Wednesday following first-half results, which beat consensus estimates for pre-tax profit.
Wise reported underlying PBT of £147.1m, reporting margins of 22.2%, topping consensus projections of 13%.
“However, with the 13-16% margin projection reaffirmed, questions remain about the timing and achievement of such low margins,” said analysts at Barclay (LON:) in a note.
This was primarily due to strong gross margin of 76.2%, aided by price adjustments at the start of the fiscal year.
However, Wise maintained its conservative guidance for the remainder of fiscal 2025, estimating PBT margins will be more in line with its medium-term target range of 13-16%.
Analyst at Morgan Stanley (NYSE:) notes that Wise's proactive approach to cost management and platform expansion has contributed to its resilience and long-term position in the competitive cross-border payments space.
Continuous improvements to the platform, including the expansion of direct local payment connections and accelerated transfer speeds, have enhanced Wise's position as a leading low-cost provider in the sector.