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BOX Gears Up to Report Q3 Earnings: What's in the Cards?

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  • BOX

Box, Inc. BOX is scheduled to report third-quarter fiscal 2022 results on Nov 30.

For the third quarter, the company expects revenues in the range of $218-$219 million. The Zacks Consensus Estimate for the same is pegged at $218.6 million, indicating growth of 11.6% from the year-ago reported value.

Further, the company anticipates non-GAAP earnings per share in the range of 20-21 cents. The consensus mark for earnings per share is pegged at 21 cents, suggesting an improvement of 5% from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 25.4%.

Box, Inc. Price and EPS Surprise

Box, Inc. Price and EPS Surprise
Box, Inc. Price and EPS Surprise

Box, Inc. price-eps-surprise | Box, Inc. Quote

Key Factors to Note

Box’s fiscal third-quarter performance is likely to have benefited from continuous efforts to strengthen the remote workforce and digital capabilities, which provide high-level security and governance.

Go-to-market strategies including price optimization and packaging, marketing initiatives, improvement in sales segmentation and territory planning might have aided its performance in the quarter under review.

Further, the growing adoption of content cloud solutions by new and existing customers is expected to have remained a major tailwind.

During the third quarter, Box was selected by the U.S. Air Force Reserve Command to help airmen, government civilians and contractors to access critical electronic content seamlessly. It was also picked by Lotte Corporation to make an advancement in the latter’s Digital Transformation program and strengthen collaboration infrastructure. These might have supported the quarterly performance.

In addition, new integrations and product launches are anticipated to have continued aiding BOX’s to-be-reported quarter’s performance.

In the third quarter, Box introduced the all-new Box Notes, an updated Box Mobile app, and deeper integrations with Microsoft 365, Slack, and Zoom. It also introduced new features to Box Shield for providing users with improved security without disruption in business workflows. These initiatives are likely to have been positives.

Yet, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the quarter under discussion.

Further, mounting expenses related to research & development and sales & marketing might have dented margins and profits in the quarter to be reported.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Box has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Bank of Montreal BMO has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank of Montreal is scheduled to release fourth-quarter fiscal 2021 results on Dec 3. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.49 per share, which suggests an increase of 37.6% from the prior-year reported figure.

CrowdStrike CRWD has an Earnings ESP of +0.92% and a Zacks Rank of 3 at present.

CrowdStrike is scheduled to release third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for its earnings is pegged at 10 cents per share, suggesting an improvement of 25% from the prior-year reported figure.

Semtech Corporation SMTC, carrying a Zacks Rank #3, has an Earnings ESP of +0.28% currently.

Semtech is also set to release third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for Semtech’s earnings is pegged at 72 cents per share, indicating a 53.2% rise from the year-ago reported value.


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Box, Inc. (BOX) : Free Stock Analysis Report

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