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BOX Gears Up to Report Q1 Earnings: What's in the Cards?

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Box, Inc. (BOX - Free Report) is scheduled to report first-quarter fiscal 2023 results on May 25.

For the fiscal first quarter, BOX expects revenues between $233 million and $235 million, suggesting a 16% year over year rise at the high-end of the range. The Zacks Consensus Estimate for the same is pegged at $234.2 million, indicating growth of 15.7% from the last fiscal year’s quarterly reported value.

Further, Box anticipates non-GAAP earnings per share of 24-25 cents. The consensus mark for earnings per share is pegged at 25 cents, suggesting an improvement of 38.9% from the previous fiscal year’s reported figure. Also, the figure has been unchanged for the past 30 days.

Earnings of BOX surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 9.6%.

Box, Inc. Price and Consensus

Box, Inc. Price and Consensus

Box, Inc. price-consensus-chart | Box, Inc. Quote

Key Factors to Note

Box’s performance for the fiscal first quarter is likely to have benefited from the growing adoption of its content cloud solutions by the new and existing customers. Also, growth in the net retention rate is expected to have remained a tailwind.

Increasing demand for hybrid working and online learning methods is anticipated to have driven the quarterly performance.

Rising demand for digital transformation, data security, compliance and privacy in businesses is expected to have benefited the to-be-reported quarter.

During the fiscal first quarter, Box was selected by Japan Post to securely share critical information with both internal and external users. This might have supported its quarterly performance.

Further, BOX’s growing efforts toward product innovation are expected to have aided the quarter under review.

In the fiscal first quarter, Box unveiled a virtual whiteboarding and visual collaboration experience solution named Box Canvas to offer a secure collaboration platform to hybrid teams. Also, Box made its integration with Slack generally available so that customers can use Box as the single file storage system in the Slack environment. These initiatives are likely to have benefited its performance in the to-be-reported quarter.

This apart, go-to-market strategies, including price optimization and packaging, might have aided Box’s performance in the quarter under discussion.

However, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the quarter to be reported.

Further, mounting expenses related to research & development and sales & marketing might have dented margins and profits in the first quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Box has an Earnings ESP of -4.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

NetApp (NTAP - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NetApp is scheduled to release fourth-quarter fiscal 2022 results on Jun 1. The Zacks Consensus Estimate for NTAP’s earnings is pegged at $1.28 per share, suggesting an increase of 9.4% from the prior fiscal year’s quarterly reported figure.

Veeva Systems (VEEV - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.

Veeva Systems is set to report first-quarter fiscal 2023 results on Jun 1. The Zacks Consensus Estimate for VEEV’s earnings is pegged at 92 cents per share, which suggests an increase of 1.1% from the prior fiscal year’s quarterly reported figure.

Infosys (INFY - Free Report) has an Earnings ESP of +5.56% and is Zacks #3 Ranked at present.

Infosys is scheduled to release first-quarter fiscal 2023 results on Jul 13. The Zacks Consensus Estimate for INFY’s earnings is pegged at 18 cents per share, which suggests an increase of 5.9% from the prior fiscal year’s quarterly reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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