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Box (BOX) Down 5.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Box (BOX - Free Report) . Shares have lost about 5.8% 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’s Q4 Earnings Surpass Estimates, Revenues Miss
Box, Inc.’s fiscal fourth-quarter 2019adjusted income was reported at 6 cents per share, surpassing the Zacks Consensus Estimate of 2 cents.
Total revenues came in at $163.7 million, marginally missing the consensus mark of $164.1 million. The top line increased 20% year over year but were at the lower end of the guided range of $163.5-$164.5 million.
During the fiscal fourth quarter, the company expanded its paying customer base to more than 92,000 organizations, up from 90,000 in the fiscal third quarter.
During the quarter, the company experienced weakness in the EMEA region. However, growing add-on products and its increasing customer base aided profits.
Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple (AAPL) and Microsoft (MSFT).
The company’s rich technology partner ecosystem will continue to be a strong driving force behind its growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $237.7 million, up 16% year over year. Deferred revenues were $375 million, up 17% from the year-ago quarter.
Operating Results
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $138.2 million increased 3.2% year over year.
On a non-GAAP basis, the company recorded operating income of $8.5 million against loss of $7.5 million a year ago. Operating margin was 5% versus (5%) in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of fiscal fourth quarter, cash and cash equivalents, and accounts receivables balance were $217.5 million and $175.1 million compared with $200.1 million and $105.7 million, respectively, at the end of the fiscal third quarter.
During the quarter, cash provided by operations was $31.3 million and free cash flow amounted to $21 million.
Guidance
For the first quarter of fiscal 2020, Box expects revenues between $161 million and $162 million. On a non-GAAP basis, the company projects loss per share in the range of 6-5 cents. GAAP loss per share is expected within 29-28 cents.
For fiscal 2020, the company expects revenues between $700 million and $704 million. On a non-GAAP basis, the company projects earnings per share in the range of $(0.03) to 1 cent. GAAP loss per share is expected within $1.06-$1.02.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -36.3% due to these changes.
VGM Scores
Currently, Box has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Box (BOX) Down 5.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Box (BOX - Free Report) . Shares have lost about 5.8% 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’s Q4 Earnings Surpass Estimates, Revenues Miss
Box, Inc.’s fiscal fourth-quarter 2019adjusted income was reported at 6 cents per share, surpassing the Zacks Consensus Estimate of 2 cents.
Total revenues came in at $163.7 million, marginally missing the consensus mark of $164.1 million. The top line increased 20% year over year but were at the lower end of the guided range of $163.5-$164.5 million.
During the fiscal fourth quarter, the company expanded its paying customer base to more than 92,000 organizations, up from 90,000 in the fiscal third quarter.
During the quarter, the company experienced weakness in the EMEA region. However, growing add-on products and its increasing customer base aided profits.
Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple (AAPL) and Microsoft (MSFT).
The company’s rich technology partner ecosystem will continue to be a strong driving force behind its growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $237.7 million, up 16% year over year. Deferred revenues were $375 million, up 17% from the year-ago quarter.
Operating Results
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $138.2 million increased 3.2% year over year.
On a non-GAAP basis, the company recorded operating income of $8.5 million against loss of $7.5 million a year ago. Operating margin was 5% versus (5%) in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of fiscal fourth quarter, cash and cash equivalents, and accounts receivables balance were $217.5 million and $175.1 million compared with $200.1 million and $105.7 million, respectively, at the end of the fiscal third quarter.
During the quarter, cash provided by operations was $31.3 million and free cash flow amounted to $21 million.
Guidance
For the first quarter of fiscal 2020, Box expects revenues between $161 million and $162 million. On a non-GAAP basis, the company projects loss per share in the range of 6-5 cents. GAAP loss per share is expected within 29-28 cents.
For fiscal 2020, the company expects revenues between $700 million and $704 million. On a non-GAAP basis, the company projects earnings per share in the range of $(0.03) to 1 cent. GAAP loss per share is expected within $1.06-$1.02.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -36.3% due to these changes.
VGM Scores
Currently, Box has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.