Cloud content storage and management platform Box (NYSE: BOX) will be reporting results tomorrow after the bell. Here’s what you need to know.
Box met analysts’ revenue expectations last quarter, reporting revenues of $275.9 million, up 5.5% year on year. It was a mixed quarter for the company, with full-year EPS guidance beating analysts’ expectations but a slight miss of analysts’ billings estimates.
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 6.3% year on year to $279.5 million, improving from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally 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 five times over the last two years.
Looking at Box’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dropbox delivered year-on-year revenue growth of 1.4%, beating analysts’ expectations by 0.7%, and Atlassian reported revenues up 21.4%, topping estimates by 3.4%. Dropbox traded down 16.2% following the results while Atlassian was up 15.2%.
Read our full analysis of Dropbox’s results here and Atlassian’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the productivity software stocks have shown solid performance, the group has generally underperformed, with share prices down 7.2% on average over the last month. Box is down 3.1% during the same time and is heading into earnings with an average analyst price target of $36.89 (compared to the current share price of $32.50).
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