A month has gone by since the last earnings report for Box (BOX - Free Report) . Shares have added about 20.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Box Reports Breakeven Q2 Earnings, Beats on Revenues
Box, Inc. reported breakeven fiscal second-quarter 2020 earnings per share versus the Zacks Consensus Estimate of a loss of 1 cent.
Total revenues came in at $172.5 million, surpassing the consensus mark of $169 million. Moreover, the top line increased 16% year over year and was above the guided range of $169-$170 million.
Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple and Microsoft.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $172.9 million, up 6% year over year. Deferred revenues were $330.8 million, up 10% from the year-ago quarter.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $154.9 million increased 8.5% year over year.
On a non-GAAP basis, the company recorded non-operating income of $0.5 million versus an operating loss of $6.5 million a year ago. Operating margin was 0% versus (4%) in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $201.5 million and $117.9 million compared with $231.4 million and $93.7 million, respectively, at the end of the fiscal first quarter.
Cash provided by operations was ($4.7) million in the fiscal second quarter.
For the third quarter of fiscal 2020, Box expects revenues between $174 million and $175 million. On a non-GAAP basis, the company projects the bottom line in the range of (1) cent to breakeven. GAAP loss per share is expected within 28-27 cents.
For fiscal 2020, Box expects revenues between $690 million and $692 million. On a non-GAAP basis, it projects earnings per share in the range of breakeven to 2 cents. GAAP loss per share is expected within $1.03-$1.01.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
At this time, Box has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth 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.
Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.