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Bull of the Day: Boxlight (BOXL)

Tracey Ryniec

Boxlight Corporation (BOXL) is expected to see double digit revenue growth in 2019 and 2020. This Zacks Rank #1 (Strong Buy) posted a big earnings beat in the fourth quarter.

Boxlight provides technology solutions for the global learnings market. It develops software, classroom technologies, professional development and support services to help educators.

A Big Beat in Q4 2018

On Mar 28, Boxlight reported its fourth quarter 2018 and full year results. It beat the Zacks Consensus Estimate by 9 cents reporting a loss of $0.06 versus the consensus of a loss of $0.15.

Revenue jumped 125% to $12 million in the quarter, ahead of the company's guidance of $11 million. That's a big turnaround from the $5.3 million in sales in the fourth quarter of 2017.

It saw greater adoption of the company's product solution suite.

Gross profit also improved to 25.2%, up from 11.3% in the year ago period.

The company's net loss on the quarter also shrank to $0.6 million from $4.6 million a year ago, a decrease of 87%.

Bullish on 2019's Revenue Gains

In guidance for 2019, given its current business pipeline, backlog and contracts, Boxlight expects 2019 revenue to increase by at least 25% over 2018, which was $37.84 million.

Gross margins are also expected to remain in the 25-30% range as it expects higher margin hardware, software and professional services to contribute more heavily to revenue.

Estimates Revised Higher

After the earnings report, 2 estimates were revised higher for 2019 pushing the 2019 Zacks Consensus Estimate up to a loss of $0.38 from a loss of $0.41. In 2018, it lost $0.39.

Analysts expect sales to jump 24.9% in 2019, in line with the company's guidance, and another 21.6% in 2020.

Shares Soar Triple Digits Year-to-Date

It's been a wild ride since the 2017 IPO.

Shares sank in the stock market correction at the end of 2018 and have since rebounded 171%.



They're still trading under $5, however, and are volatile.

This is a micro-cap stock with a market cap of just $34 million.

But if you're looking for a big growth small cap stock, and can handle the volatility, Boxlight is one to keep on your short list.

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