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BOX Gears Up for Q3 Earnings: What's in Store for the Stock?
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Box, Inc. (BOX - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 30.
For the fiscal third quarter, BOX expects revenues between $250 million and $252 million, suggesting a 13% rise at the higher end of the range from the prior fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for the same is pegged at $250.8 million, indicating 11.9% growth from the last fiscal year’s quarterly reported value.
Box anticipates non-GAAP earnings per share of 29-30 cents. The consensus mark for the metric is pegged at 30 cents, suggesting an improvement of 36.4% from the previous fiscal year’s quarterly reported figure. Also, the bottom line has been unchanged over the past 30 days.
Earnings of BOX surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed the mark once and matched the same on another occasion, the average beat being 0.28%.
Box’s performance for the fiscal third quarter is likely to have benefited from the growing adoption of content cloud solutions by new and existing customers.
Consistent growth in the net retention rate owing to strengthening multi-product offerings and deeper integrations might have persisted in the underlined quarter.
Growing momentum across government and private organizations is expected to have acted as a catalyst in the quarter under review.
Increasing demand for hybrid working and online learning methods is anticipated to have continued driving the quarterly performance.
Rising demand for digital transformation, data security, compliance and privacy in businesses is expected to have aided the to-be-reported fiscal quarter’s performance.
Box’s continuous efforts toward product innovation are expected to have benefited the fiscal quarter under discussion.
During the fiscal third quarter, Box enhanced Box Sign with novel features to help Box customers optimally use the Box content cloud without additional costs. This might have been a positive in the fiscal quarter to be reported.
This apart, go-to-market strategies, including price optimization and packaging, might have supported Box’s performance in the fiscal quarter under review.
However, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the fiscal quarter to be reported.
Mounting expenses related to investments in cloud infrastructure, sales and marketing, and administration are likely to have dented profit margins in the quarter under discussion.
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, as elaborated below. 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 0.00% and a Zacks Rank #4 (Sell) 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.
Dollar General is set to report third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for DG’s earnings is pegged at $2.55 per share, suggesting an increase of 22.6% from the prior-year fiscal period’s reported figure.
BrownForman (BF.B - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #3 at present.
BrownForman is scheduled to release second-quarter fiscal 2023 results on Dec 7. The Zacks Consensus Estimate for BF.B’s earnings is pegged at 55 cents per share, suggesting an increase of 12.2% from the prior fiscal year’s quarterly reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +12.58% and a Zacks Rank of 3 at present.
Casey is scheduled to release second-quarter fiscal 2023 results on Dec 6. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.10 per share, suggesting an increase of 19.7% from the prior-year fiscal quarter’s reported figure.
Image: Shutterstock
BOX Gears Up for Q3 Earnings: What's in Store for the Stock?
Box, Inc. (BOX - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 30.
For the fiscal third quarter, BOX expects revenues between $250 million and $252 million, suggesting a 13% rise at the higher end of the range from the prior fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for the same is pegged at $250.8 million, indicating 11.9% growth from the last fiscal year’s quarterly reported value.
Box anticipates non-GAAP earnings per share of 29-30 cents. The consensus mark for the metric is pegged at 30 cents, suggesting an improvement of 36.4% from the previous fiscal year’s quarterly reported figure. Also, the bottom line has been unchanged over the past 30 days.
Earnings of BOX surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed the mark once and matched the same on another occasion, the average beat being 0.28%.
Box, Inc. Price and EPS Surprise
Box, Inc. price-eps-surprise | Box, Inc. Quote
Key Factors to Note
Box’s performance for the fiscal third quarter is likely to have benefited from the growing adoption of content cloud solutions by new and existing customers.
Consistent growth in the net retention rate owing to strengthening multi-product offerings and deeper integrations might have persisted in the underlined quarter.
Growing momentum across government and private organizations is expected to have acted as a catalyst in the quarter under review.
Increasing demand for hybrid working and online learning methods is anticipated to have continued driving the quarterly performance.
Rising demand for digital transformation, data security, compliance and privacy in businesses is expected to have aided the to-be-reported fiscal quarter’s performance.
Box’s continuous efforts toward product innovation are expected to have benefited the fiscal quarter under discussion.
During the fiscal third quarter, Box enhanced Box Sign with novel features to help Box customers optimally use the Box content cloud without additional costs. This might have been a positive in the fiscal quarter to be reported.
This apart, go-to-market strategies, including price optimization and packaging, might have supported Box’s performance in the fiscal quarter under review.
However, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the fiscal quarter to be reported.
Mounting expenses related to investments in cloud infrastructure, sales and marketing, and administration are likely to have dented profit margins in the quarter under discussion.
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, as elaborated below. 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 0.00% and a Zacks Rank #4 (Sell) 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.
Dollar General (DG - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General is set to report third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for DG’s earnings is pegged at $2.55 per share, suggesting an increase of 22.6% from the prior-year fiscal period’s reported figure.
BrownForman (BF.B - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #3 at present.
BrownForman is scheduled to release second-quarter fiscal 2023 results on Dec 7. The Zacks Consensus Estimate for BF.B’s earnings is pegged at 55 cents per share, suggesting an increase of 12.2% from the prior fiscal year’s quarterly reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +12.58% and a Zacks Rank of 3 at present.
Casey is scheduled to release second-quarter fiscal 2023 results on Dec 6. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.10 per share, suggesting an increase of 19.7% from the prior-year fiscal quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.