BOX Gears Up for Q1 Earnings: What's in Store for the Stock?
Box, Inc. BOX is scheduled to report first-quarter fiscal 2024 results on May 30.
For the fiscal first quarter, BOX expects revenues between $248 million and $250 million, suggesting a 5% rise at the high end of the range from the prior fiscal year’s reported figure. The Zacks Consensus Estimate for the same is pegged at $249.3 million, indicating 4.5% growth from the last fiscal year’s quarterly reported value.
Box anticipates non-GAAP earnings per share in the band of 26-27 cents. The consensus mark for the metric is pegged at 27 cents, suggesting an improvement of 17.4% from the previous fiscal year’s quarterly reported figure. Also, the bottom line has been unchanged over the past 30 days.
Earnings of BOX surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed the mark once and matched the same on another occasion, the average beat being 1.04%.
Box, Inc. Price and EPS Surprise
Box, Inc. price-eps-surprise | Box, Inc. Quote
Key Factors to Note
Box’s performance for the fiscal first quarter is likely to have benefited from the growing adoption of content cloud solutions by new and existing customers.
Consistent growth in the net retention rate, owing to strengthening multi-product offerings and deeper integrations, might have persisted in the underlined quarter.
Growing momentum across government and private organizations is expected to have acted as a catalyst in the quarter under review.
Increasing demand for hybrid working and online learning methods is anticipated to have continued driving the quarterly performance.
Rising demand for digital transformation, data security, compliance and privacy in businesses is expected to have aided the to-be-reported fiscal quarter’s performance.
Box’s continuous efforts toward product innovation are expected to have benefited the fiscal quarter under discussion.
During the fiscal first quarter, Box unveiled Box Canvas, a virtual whiteboarding and visual collaboration tool that offers a new approach for teams to unleash their creativity. This might have been a positive in the fiscal quarter to be reported.
This apart, go-to-market strategies, including price optimization and packaging, might have supported Box’s performance in the fiscal quarter under review.
However, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the fiscal first quarter.
Mounting expenses related to investments in cloud infrastructure, sales and marketing and administration are likely to have dented profit margins in the quarter under discussion.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below.
Box has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BOX carries a Zacks Rank #3 (Hold) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler ZS has an Earnings ESP of +4.47% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ZS is scheduled to release third-quarter fiscal 2023 results on Jun 1. The Zacks Consensus Estimate for ZS’ earnings is pegged at 42 cents per share, suggesting a jump from 17 cents reported in the year-ago quarter.
C3.ai AI has an Earnings ESP of +6.67% and currently carries a Zacks Rank #3.
C3.ai is set to report fourth-quarter fiscal 2023 results on May 31. The Zacks Consensus Estimate for AI’s loss is pegged at 17 cents per share. The company incurred a loss of 21 cents per share in the year-ago quarter.
Jabil JBL has an Earnings ESP of +3.38% and a Zacks Rank #3 at present.
JBL is expected to report third-quarter fiscal 2023 results on Jun 15. The Zacks Consensus Estimate for JBL’s earnings is pegged at $1.90 per share, suggesting an increase of 10.5% from the prior-year quarter’s reported figure.
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