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Tale of the Tape

Zacks Equity Research

Can Box, Inc. (BOX) Keep the Earnings Streak Alive This Quarter?
October 07, 2016


Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Box, Inc. (BOX - Snapshot Report) , a firm in the Internet Software industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, BOX has beaten estimates by at least  20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, Box expected to post a loss of 39 cents per share, while it actually produced a loss of 31 cents per share, a beat of 20.5%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 37 cents per share, when it actually reported loss of 29 cents per share instead, representing a 21.6% positive surprise.

BOX INC-A Price and EPS Surprise


BOX INC-A Price and EPS Surprise | BOX INC-A Quote

Thanks in part to this history, recent estimates have been moving higher for Box. In fact, the Earnings ESP for BOX is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for BOX, as the firm currently has a Zacks Earnings ESP of 2.86%, so another beat could be around the corner.

This is particularly true when you consider that BOX has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that BOX could see another beat at its next report, especially if recent trends are any guide.

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