We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dropbox (DBX) to Report Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Dropbox Inc. (DBX - Free Report) is expected to release first-quarter fiscal 2019 results on May 9.
Notably, the company beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 72.9%.
Past-Quarter Performance
In the last reported quarter, the company reported non-GAAP earnings of 10 cents surpassing the Zacks Consensus Estimate of 8 cents per share. Revenues were $376 million outpacing the Zacks Consensus Estimate of $370 million. The top line also increased 23% on a year over year basis, primarily on the back of higher user growth and ARPU expansion.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 6 cents, unchanged for the last 30 days. This reflects a decline of about 25% from year-ago earnings. For quarterly sales, the consensus mark stands at $381.4 million, suggesting an improvement from 20.6% from the year-ago reported figure.
Dropbox expects revenues for 2019 to be in the range of $1.627 billion to $1.642 billion. The Zacks Consensus Estimate for revenues is pegged at $1.64 billion, suggesting growth of 17.6% from the year-ago figure.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Dropbox’s continuous efforts to strengthen cloud-based and AI technologies are likely to drive the top line in the to-be reported quarter. The company’s focus on helping users access and synchronize files as well as use applications through multiple devices is enhancing user experience which in turn is likely to aid the first-quarter results.
Moreover, the company’s integration of Dropbox Extensionsand various partnership programs is making it easier for people and organizations to work with files on the go. Further, strong focus on product innovation and introducing new products is anticipated to provide the company a competitive edge against its peers, which in turn will impact the top line in the to-be-reported quarter.
Recently, Dropbox completed the acquisition of HelloSign. Together, Dropbox and HelloSign will provide enhanced experience to Dropbox users, and simplify workflows for millions of customers. Dropbox has also announced various partnership programs of late. The company recently entered into a partnership with Microsoft, Google, Salesforce, Adobe, and Zoom. The alliance is making it easier for people and organizations to work with files on the go. Dropbox’s acquisition synergies and strong expansion will favor first-quarter results.
These aforesaid factors are helping Dropbox to win new customers. However, increasing investments on product enhancements and other growth strategies are likely to limit margin expansion at least in the near term.
What the Zacks Model Unveils
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. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Dropbox carries a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks with Favorable Combination
Here are a few stocks that are worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Synopsys, Inc. (SNPS - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #1.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
Dropbox (DBX) to Report Q1 Earnings: What's in the Offing?
Dropbox Inc. (DBX - Free Report) is expected to release first-quarter fiscal 2019 results on May 9.
Notably, the company beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 72.9%.
Past-Quarter Performance
In the last reported quarter, the company reported non-GAAP earnings of 10 cents surpassing the Zacks Consensus Estimate of 8 cents per share. Revenues were $376 million outpacing the Zacks Consensus Estimate of $370 million. The top line also increased 23% on a year over year basis, primarily on the back of higher user growth and ARPU expansion.
Dropbox, Inc. Price, Consensus and EPS Surprise
Dropbox, Inc. Price, Consensus and EPS Surprise | Dropbox, Inc. Quote
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings is pegged at 6 cents, unchanged for the last 30 days. This reflects a decline of about 25% from year-ago earnings. For quarterly sales, the consensus mark stands at $381.4 million, suggesting an improvement from 20.6% from the year-ago reported figure.
Dropbox expects revenues for 2019 to be in the range of $1.627 billion to $1.642 billion. The Zacks Consensus Estimate for revenues is pegged at $1.64 billion, suggesting growth of 17.6% from the year-ago figure.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Dropbox’s continuous efforts to strengthen cloud-based and AI technologies are likely to drive the top line in the to-be reported quarter. The company’s focus on helping users access and synchronize files as well as use applications through multiple devices is enhancing user experience which in turn is likely to aid the first-quarter results.
Moreover, the company’s integration of Dropbox Extensionsand various partnership programs is making it easier for people and organizations to work with files on the go. Further, strong focus on product innovation and introducing new products is anticipated to provide the company a competitive edge against its peers, which in turn will impact the top line in the to-be-reported quarter.
Recently, Dropbox completed the acquisition of HelloSign. Together, Dropbox and HelloSign will provide enhanced experience to Dropbox users, and simplify workflows for millions of customers. Dropbox has also announced various partnership programs of late. The company recently entered into a partnership with Microsoft, Google, Salesforce, Adobe, and Zoom. The alliance is making it easier for people and organizations to work with files on the go. Dropbox’s acquisition synergies and strong expansion will favor first-quarter results.
These aforesaid factors are helping Dropbox to win new customers. However, increasing investments on product enhancements and other growth strategies are likely to limit margin expansion at least in the near term.
What the Zacks Model Unveils
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. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Dropbox carries a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks with Favorable Combination
Here are a few stocks that are worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Fujifilm Holdings Corp. (FUJIY - Free Report) has an Earnings ESP of +20.55% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synopsys, Inc. (SNPS - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #1.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>