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Dropbox (DBX) to Report Q3 Earnings: What's in the Cards?

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Dropbox Inc. (DBX - Free Report) is expected to release third-quarter fiscal 2018 results on Nov 8.

Notably, the company beat the Zacks Consensus Estimate in two of the trailing four quarters, recording average positive surprise of 91.7%.

In the last reported quarter, the company reported loss of 1 cent per narrower than the Zacks Consensus Estimate loss of 6 cents per share. Revenues were $339 million, beating the Zacks Consensus Estimate of $330 million.

What to Expect

The Zacks Consensus Estimate for earnings and revenues is currently pegged at 6 cents and $352.2 million, respectively.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

Dropbox is a file backup service that offers cloud-based file management, storage systems and client software. Dropbox’s continuous efforts to strengthen its cloud-based and AI technologies are likely to drive the top line. The company’s focus on helping users access and synchronize files as well as use applications through multiple devices is enhancing user experience.

Dropbox has also announced various partnership programs of late. The company recently entered into a partnership with Moovly Media Inc. and Zoom Video Communications. The alliance is making it easier for people and organizations to work with files on the go.

Additionally, the company’s partnerships with Hewlett Packard Enterprise Company, Ingram Micro and Adobe Systems will help Dropbox to market their products easily and expand in newer markets.  Dropbox’s extended partnerships and strong focus on product innovation and expansion is likely to favor third-quarter results.

Dropbox, Inc. Price and EPS Surprise

 

Dropbox, Inc. Price and EPS Surprise | Dropbox, Inc. Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Dropboxhas an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With a Favorable Combination

Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:

Adobe Systems Incorporated (ADBE - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +6.52% and a Zacks Rank #2.

Activision Blizzard, Inc (ATVI - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #3.

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