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Will New Cloud Products Propel Box's (BOX) Q2 Earnings?
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Box, Inc. (BOX - Free Report) is set to report second-quarter fiscal 2019 results on Aug 28. In the last reported quarter, the company delivered a positive earnings surprise of 12.50%.
The surprise history has been impressive in Box’s case. The company surpassed estimates in three of the trailing four quarters, with an average four-quarter positive surprise of 13.22%.
The company's shares have gained 31% in the past 12 months, underperforming the industry’s rally of 35.4%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Box’s fiscal first-quarter loss of 7 cents was narrower than the Zacks Consensus Estimate of 8 cents. Revenues of $140.5 million, however, surpassed the Zacks Consensus Estimate of $140 million.
For the quarter to be reported, Box expects revenues in the range of $146-$147 million. We expect the company to continue delivering robust top-line growth in the fiscal second quarter, driven by strength across international markets, including EMEA and Japan, along with growing add-on products.
It has been continuously investing in security, compliance and administrative technology, and plans to hire more sales personnel going forward. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe, among others, will help the company capitalize on the increasing adoption of cloud computing technologies and the need for secure collaboration.
However, continuous investments in research and development could dent margins as well as profits, going ahead.
On a non-GAAP basis, it projects loss per share in the range of 6-5 cents for the to-be-reported quarter.
What Our Model Suggests
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if these have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Box currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination suggesting that the company is unlikely to beat estimates.
Syntel, Inc. has an Earnings ESP of +1.81% and a Zacks Rank of 2.
Verizon Communications Inc. (VZ - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Will New Cloud Products Propel Box's (BOX) Q2 Earnings?
Box, Inc. (BOX - Free Report) is set to report second-quarter fiscal 2019 results on Aug 28. In the last reported quarter, the company delivered a positive earnings surprise of 12.50%.
The surprise history has been impressive in Box’s case. The company surpassed estimates in three of the trailing four quarters, with an average four-quarter positive surprise of 13.22%.
The company's shares have gained 31% in the past 12 months, underperforming the industry’s rally of 35.4%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Box’s fiscal first-quarter loss of 7 cents was narrower than the Zacks Consensus Estimate of 8 cents. Revenues of $140.5 million, however, surpassed the Zacks Consensus Estimate of $140 million.
For the quarter to be reported, Box expects revenues in the range of $146-$147 million. We expect the company to continue delivering robust top-line growth in the fiscal second quarter, driven by strength across international markets, including EMEA and Japan, along with growing add-on products.
It has been continuously investing in security, compliance and administrative technology, and plans to hire more sales personnel going forward. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe, among others, will help the company capitalize on the increasing adoption of cloud computing technologies and the need for secure collaboration.
However, continuous investments in research and development could dent margins as well as profits, going ahead.
On a non-GAAP basis, it projects loss per share in the range of 6-5 cents for the to-be-reported quarter.
What Our Model Suggests
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if these have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Box currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination suggesting that the company is unlikely to beat estimates.
Box, Inc. Price and EPS Surprise
Box, Inc. Price and EPS Surprise | Box, Inc. Quote
Stocks to Consider
You may consider the following stocks with a positive Earnings ESP and a favorable Zacks Rank:
Semtech Corporation (SMTC - Free Report) has an Earnings ESP of +2.39% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Syntel, Inc. has an Earnings ESP of +1.81% and a Zacks Rank of 2.
Verizon Communications Inc. (VZ - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>