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What's in the Cards for Box, Inc (BOX) in Q1 Earnings?
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Box, Inc. (BOX - Free Report) is set to report first-quarter fiscal 2018 results on May 31. Last quarter, the company delivered a positive earnings surprise of 6.67%.
The surprise history has been good in Box’s case. The company surpassed estimates in each of the trailing four quarters with an average four-quarter positive surprise of 15.77%.
Coming to the price performance, the company has been steadily treading higher for the last one year. The stock has returned 55.2% compared with the Zacks Internet-Software industry's gain of 23.8%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Box incurred fiscal fourth-quarter loss of 28 cents per share, lower than the Zacks Consensus Estimate by 2 cents. However, revenues of $109.9 million increased 29% year over year driven by strong growth in billings.
The company has been continuously investing in security, compliance and administrative technology, and plans to hire more sales personnel. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe among others, will help the company to capitalize on increasing adoption of cloud computing technologies and the need for secure collaboration.
However, continuous investments in research and development could dent margins as well as profits going ahead.
For the first quarter of fiscal 2018, the company expects to report revenues in the range of $114–$115 million and non-GAAP loss per share of 15 cents to 14 cents.
Earnings Whispers
Our proven model does not conclusively show that Box will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 30 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Box has a Zacks Rank #3. We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Frontline Ltd. (FRO - Free Report) with an Earnings ESP of +8.33% and a Zacks Rank #3.
Ship Finance International Limited (SFL - Free Report) with an Earnings ESP of +6.25% and a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
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What's in the Cards for Box, Inc (BOX) in Q1 Earnings?
Box, Inc. (BOX - Free Report) is set to report first-quarter fiscal 2018 results on May 31. Last quarter, the company delivered a positive earnings surprise of 6.67%.
The surprise history has been good in Box’s case. The company surpassed estimates in each of the trailing four quarters with an average four-quarter positive surprise of 15.77%.
Coming to the price performance, the company has been steadily treading higher for the last one year. The stock has returned 55.2% compared with the Zacks Internet-Software industry's gain of 23.8%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Box incurred fiscal fourth-quarter loss of 28 cents per share, lower than the Zacks Consensus Estimate by 2 cents. However, revenues of $109.9 million increased 29% year over year driven by strong growth in billings.
The company has been continuously investing in security, compliance and administrative technology, and plans to hire more sales personnel. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe among others, will help the company to capitalize on increasing adoption of cloud computing technologies and the need for secure collaboration.
However, continuous investments in research and development could dent margins as well as profits going ahead.
For the first quarter of fiscal 2018, the company expects to report revenues in the range of $114–$115 million and non-GAAP loss per share of 15 cents to 14 cents.
Earnings Whispers
Our proven model does not conclusively show that Box will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 30 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Box has a Zacks Rank #3. We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Box, Inc. Price and EPS Surprise
Box, Inc. Price and EPS Surprise | Box, Inc. Quote
Stocks to Consider
You could consider the following stocks with a positive Earnings ESP and a favorable Zacks Rank.
CareDx, Inc (CDNA - Free Report) with an Earnings ESP of +7.69% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.
Frontline Ltd. (FRO - Free Report) with an Earnings ESP of +8.33% and a Zacks Rank #3.
Ship Finance International Limited (SFL - Free Report) with an Earnings ESP of +6.25% and a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>