Investing.com — Shares of Wise (LON:) PLC climbed over 5% on Wednesday following its first-half results, which beat consensus estimates for underlying pre-tax profit.
Wise reported an underlying PBT of £147.1 million, reporting a margin of 22.2%, outperforming consensus projections by 13%.
“However, with the outlook for a margin of 13-16% reiterated, questions remain on the timing and achievability of such a low margin,” said analysts at Barclays (LON:) in a note.
This is attributed primarily to a strong underlying gross margin of 76.2%, which was aided by pricing adjustments earlier in the fiscal year.
However, Wise maintained its conservative guidance for the remainder of fiscal year 2025, forecasting a PBT margin that would align more closely with its medium-term target range of 13-16%.
Analysts at Morgan Stanley (NYSE:) noted that Wise’s proactive approach to cost management and platform expansion has contributed to its resilience and long-term positioning within the competitive cross-border payments space.
The platform’s continuous improvements, including the expansion of direct local payment connections and the acceleration of transfer speeds, have boosted Wise’s position as a leading low-cost provider in this sector.
