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Why Is Box (BOX) Down 14.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Box (BOX - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Box due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Box Q2 Earnings and Revenues Top Estimates, Rise Y/Y
Box, Inc. reported fiscal second-quarter 2021 earnings per share of 18 cents, which surpassed the Zacks Consensus Estimate by 5 cents. The company recorded earnings of $0.00 per share a year ago.
Total revenues came in at $192.3 million, surpassing the consensus mark by 1.5%. The top line increased 11% year over year and was above the guided range of $189-$190 million.
Following strong fiscal second-quarter results, the share price rose 8.8%.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strong demand for its add-on products and high volume of large enterprise deals aided revenue growth during the quarter.
Box is currently working on enriching cloud content management and AI platforms. During the quarter, it partnered with Google Cloud in a bid to enhance the scale, performance and intelligence of its platform.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $188.8 million, up 9% year over year. Deferred revenues were $364.9 million, up 10% from the year-ago quarter.
Operating Results
Non-GAAP gross profit for the second quarter was $141.4 million, up 15% year over year.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $144.5 million decreased 6.8% year over year.
On a non-GAAP basis, the company recorded operating income of $30.1 million versus operating income of $0.5 million a year ago. Operating margin was 16%, up 1,500 bps year over year.
Balance Sheet and Cash Flow
At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $271.9 million and $123 million compared with $268 million and $99.1 million, respectively, at fiscal first quarter-end.
Net cash provided by operations was $32.3 million and free cash flow was $13.3 million in the fiscal second quarter.
Guidance
For the third quarter of fiscal 2021, Box expects revenues between $193 million and $195 million. On a non-GAAP basis, the company projects earnings per share within 13-15 cents. GAAP loss per share is expected within 10-8 cents.
For fiscal 2021, Box’s revenue guidance is expected within $767-$770 million.On a non-GAAP basis, it projects earnings per share in the range of 56-60 cents. GAAP loss per share is expected in the range of 39-35 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 30.56% due to these changes.
VGM Scores
At this time, Box has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Box has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Box (BOX) Down 14.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Box (BOX - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Box due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Box Q2 Earnings and Revenues Top Estimates, Rise Y/Y
Box, Inc. reported fiscal second-quarter 2021 earnings per share of 18 cents, which surpassed the Zacks Consensus Estimate by 5 cents. The company recorded earnings of $0.00 per share a year ago.
Total revenues came in at $192.3 million, surpassing the consensus mark by 1.5%. The top line increased 11% year over year and was above the guided range of $189-$190 million.
Following strong fiscal second-quarter results, the share price rose 8.8%.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strong demand for its add-on products and high volume of large enterprise deals aided revenue growth during the quarter.
Box is currently working on enriching cloud content management and AI platforms. During the quarter, it partnered with Google Cloud in a bid to enhance the scale, performance and intelligence of its platform.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $188.8 million, up 9% year over year. Deferred revenues were $364.9 million, up 10% from the year-ago quarter.
Operating Results
Non-GAAP gross profit for the second quarter was $141.4 million, up 15% year over year.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $144.5 million decreased 6.8% year over year.
On a non-GAAP basis, the company recorded operating income of $30.1 million versus operating income of $0.5 million a year ago. Operating margin was 16%, up 1,500 bps year over year.
Balance Sheet and Cash Flow
At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $271.9 million and $123 million compared with $268 million and $99.1 million, respectively, at fiscal first quarter-end.
Net cash provided by operations was $32.3 million and free cash flow was $13.3 million in the fiscal second quarter.
Guidance
For the third quarter of fiscal 2021, Box expects revenues between $193 million and $195 million. On a non-GAAP basis, the company projects earnings per share within 13-15 cents. GAAP loss per share is expected within 10-8 cents.
For fiscal 2021, Box’s revenue guidance is expected within $767-$770 million.On a non-GAAP basis, it projects earnings per share in the range of 56-60 cents. GAAP loss per share is expected in the range of 39-35 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 30.56% due to these changes.
VGM Scores
At this time, Box has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Box has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.