🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Box (BOX) Gears Up For Q4 Earnings: What's In The Cards?

Published 02/19/2020, 09:06 PM
Updated 07/09/2023, 06:31 AM
MSFT
-
AVGO
-
BOX
-
AAOI
-
SQ
-

Box, Inc. (NYSE:BOX) is set to report fourth-quarter fiscal 2020 results on Feb 26. In the last reported quarter, the company delivered a positive earnings surprise of 100%.

For the to-be-reported quarter, the Zacks Consensus Estimate for earnings has remained stable at 4 cents per share over the past 30 days. This indicates a decline of 33.3% from the year-ago reported figure.

Notably, the consensus mark for revenues is pegged at $181.5 million, implying growth of 10.9% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Box, Inc. Price and EPS Surprise

Factors at Play

Box invested in security, compliance and administrative technology during the fiscal fourth quarter. These investments with leading enterprises helped the company capitalize on increasing adoption of cloud computing technologies and the need for secure collaboration. This in turn is likely to have driven top-line growth in the quarter to be reported.

During the quarter, Box rode high on the back of increasing adoption of the cloud content management platform by existing and new customers, including the NHL, Los Angeles World Airports, DC Office of the Attorney General, Epic Games and impossible Foods. Expanding paid customer base is anticipated to have aided its top-line growth in the to-be-reported quarter.

Moreover, strength across international markets and growing add-on products might have aided the to-be-reported quarter’s earnings.

However, weakness in the EMEA region may reflect on its upcoming results. Also, continuous investments in research and development may have dented margins and profits in the quarter to be reported.

For the quarter to be reported, it expects revenues in the range of $181-$182 million. On a non-GAAP basis, Box projects earnings per share in the range of 4-5 cents.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Box has a Zacks Rank #3.

Stocks That Warrant a Look

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earningsbeat in the upcoming releases.

Broadcom Inc. (NASDAQ:AVGO) has an Earnings ESP of +1.72% and a Zacks Rank of 2.

Square, Inc. (NYSE:SQ) has an Earnings ESP of +3.59% and a Zacks Rank #3.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>



Broadcom Inc. (AVGO): Free Stock Analysis Report

Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report

Box, Inc. (BOX): Free Stock Analysis Report

Square, Inc. (SQ): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.