Cloud content management platform Box (NYSE: BOX) will be reporting earnings this Tuesday after market close. Here’s what investors should know.
Box beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $276.3 million, up 4.4% year on year. It was a very strong quarter for the company, with an impressive 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 7.7% year on year to $290.8 million, improving from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Dropbox’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.2%, and SoundHound AI reported revenues up 217%, topping estimates by 31.2%. Dropbox traded up 2.8% following the results while SoundHound AI was also up 25.8%.
Read our full analysis of Dropbox’s results here and SoundHound AI’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Box is down 2.7% during the same time and is heading into earnings with an average analyst price target of $36.50 (compared to the current share price of $31.98).
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