Cloud content storage and management platform Box (NYSE:BOX) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Box met analysts’ revenue expectations last quarter, reporting revenues of $270 million, up 3.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Is Box a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Box’s revenue to grow 5.2% year on year to $275.1 million, in line with the 4.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Box has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Box’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Dropbox posted flat year-on-year revenue, meeting analysts’ expectations, and Five9 reported revenues up 14.8%, topping estimates by 3.6%. Dropbox traded down 3% following the results while Five9 was up 12.1%.
Read our full analysis of Dropbox’s results here and Five9’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 17% on average over the last month. Box is up 8% during the same time and is heading into earnings with an average analyst price target of $33.11 (compared to the current share price of $35.09).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
