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BOX Down 4.3% Since Earnings Report: Can It Rebound?
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It has been more than a month since the last earnings report for Box, Inc. (BOX - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
Box's fiscal second-quarter 2018 adjusted loss was 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 13 cents per share. Revenues came in at $122.9 million, surpassing the consensus mark of $121.6 million.
Revenues and Billings
Net revenue of $122.9 million was up a 28.4% on a year-over-year basis and came ahead of the guided range of $121 and $122 million. Billings were $139.5 million, up 30.9% year over year. Deferred revenues were $240.8 million, up 31.6% year over year.
Margins and Net Income
Non-GAAP gross margin was 73.3%, up 218 basis points (bps) year over year. Box’s operating expenses (general and administrative, sales and marketing, research and development) of $129.2 million increased 21.8% year over year. As a percentage of sales, all expenses decreased. Non-GAAP net loss was $15.2 million compared with $18.1 million in the year-ago quarter. On a GAAP basis, the company recorded net loss of $39.3 million or loss of 30 cents per share compared with a net loss of $38.1 million or loss of 30 cents per share a year ago.
Balance Sheet and Cash Flow
As of Jul 31, 2017, cash and cash equivalents, and accounts receivables balance were $165.3 million and $107.9 million, respectively compared with $183.7 million and $82.8 million as of Apr 30, 2017. Long-term debt was $40 million, flat with the previous quarter. During the quarter, cash used in operations was $9.5 million and capital expenditure was $1 million.
Outlook
For the third quarter of fiscal 2018, Box expects revenues between $128 million and $129 million. On a non-GAAP basis, the company projects loss per share in the range of 13 cents to 14 cents. GAAP loss per share is expected in the range of 33 cents to 34 cents per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
At this time, the stock stock has a nice Growth Score of B, though it is lagging a bit on the momentum front with a D. Following a similar course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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BOX Down 4.3% Since Earnings Report: Can It Rebound?
It has been more than a month since the last earnings report for Box, Inc. (BOX - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
Box's fiscal second-quarter 2018 adjusted loss was 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 13 cents per share. Revenues came in at $122.9 million, surpassing the consensus mark of $121.6 million.
Revenues and Billings
Net revenue of $122.9 million was up a 28.4% on a year-over-year basis and came ahead of the guided range of $121 and $122 million. Billings were $139.5 million, up 30.9% year over year. Deferred revenues were $240.8 million, up 31.6% year over year.
Margins and Net Income
Non-GAAP gross margin was 73.3%, up 218 basis points (bps) year over year. Box’s operating expenses (general and administrative, sales and marketing, research and development) of $129.2 million increased 21.8% year over year. As a percentage of sales, all expenses decreased. Non-GAAP net loss was $15.2 million compared with $18.1 million in the year-ago quarter. On a GAAP basis, the company recorded net loss of $39.3 million or loss of 30 cents per share compared with a net loss of $38.1 million or loss of 30 cents per share a year ago.
Balance Sheet and Cash Flow
As of Jul 31, 2017, cash and cash equivalents, and accounts receivables balance were $165.3 million and $107.9 million, respectively compared with $183.7 million and $82.8 million as of Apr 30, 2017. Long-term debt was $40 million, flat with the previous quarter. During the quarter, cash used in operations was $9.5 million and capital expenditure was $1 million.
Outlook
For the third quarter of fiscal 2018, Box expects revenues between $128 million and $129 million. On a non-GAAP basis, the company projects loss per share in the range of 13 cents to 14 cents. GAAP loss per share is expected in the range of 33 cents to 34 cents per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
Box, Inc. Price and Consensus
Box, Inc. Price and Consensus | Box, Inc. Quote
VGM Scores
At this time, the stock stock has a nice Growth Score of B, though it is lagging a bit on the momentum front with a D. Following a similar course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.