BOX Gears Up to Report Q4 Earnings: Here's What to Expect
Box, Inc. BOX is scheduled to report fourth-quarter fiscal 2024 results on Mar 5.
For fourth-quarter fiscal 2024, Box expects revenues between $262 million and $264 million, suggesting a 3% rise at the high end of the range from the prior fiscal year’s reported figure. The constant currency growth rate is pegged at 5%. The Zacks Consensus Estimate for the same is pegged at $262.9 million, indicating 2.5% growth from the last fiscal year quarter’s reported value.
Box anticipates non-GAAP earnings per share in the range of 38-39 cents. The consensus mark for the metric is pegged at 38 cents, suggesting an improvement of 2.7% from the previous fiscal year quarter’s reported figure. The bottom line has been unchanged over the past 30 days.
Earnings of BOX surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark once, the average beat being 6.2%.
Box, Inc. Price and EPS Surprise
Box, Inc. price-eps-surprise | Box, Inc. Quote
Factors to Note
The growing adoption of Box’s content cloud by existing and new customers is likely to have benefited the company’s fiscal fourth-quarter performance.
BOX’s enhanced security, compliance, data governance and privacy capabilities of its Content Cloud are expected to have driven momentum across government and private organizations in the quarter under review.
Moreover, the company’s growing efforts toward strengthening its content management capabilities are expected to have contributed well.
During the quarter under review, Box acquired Crooze, a provider of no-code enterprise content management applications, to help organizations manage contract lifecycle, digital assets, controlled documents and enterprise content libraries.
This apart, expanding multi-product offerings and deeper integrations are likely to have boosted the company’s net retention rate in the to-be-reported quarter.
Improved capabilities of Box Sign are likely to have continued helping customers move their signature transactions to the cloud.
In the fiscal fourth quarter, Box announced that its native e-signature product, Box Sign, now supports FDA 21 CFR Part 11 regulations for electronic signatures, available as part of the Box GxP Validation offering in the Box Enterprise Plus plan. This is expected to have driven customer momentum further.
In addition, Box’s growing momentum in Enterprise Plus Suites is likely to have bolstered its attach rate during the to-be-reported quarter.
All these endeavors are likely to have impacted the upcoming results positively.
However, mounting expenses related to investments in cloud infrastructure, sales and marketing, and administration are likely to have remained a concern in the quarter under review.
Also, rising cloud competition is likely to have continued to be a serious risk.
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.
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.
It has 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.
The Gap GPS has an Earnings ESP of +54.71% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s reported loss of 75 cents per share.
Burlington Stores BURL has an Earnings ESP of +2.32% and a Zacks Rank of 3 at present.
The company is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for BURL’s earnings is pinned at $3.25 per share, indicating growth of 9.8% from the year-ago quarter’s reported figure.
Compugen CGEN has an Earnings ESP of +451.63% and a Zacks Rank #2 at present.
Compugen is scheduled to release fourth-quarter 2023 results on Mar 5. The Zacks Consensus Estimate for CGEN’s earnings is pegged at 10 cents per share, suggesting a jump from the prior-year quarter loss of 4 cents per share.
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Box, Inc. (BOX) : Free Stock Analysis Report
