What To Expect From Box’s (BOX) Q1 Earnings

Kayode Omotosho /
2022/05/24 7:05 am EDT
Add to Watchlist

Cloud content storage and management platform Box (NYSE:BOX) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter Box reported revenues of $233.3 million, up 17.3% year on year, beating analyst revenue expectations by 2.08%. It was a solid quarter for the company, with guidance for the next quarter and full-year beating analysts' expectations.

Is Box buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Box's revenue to grow 15.8% year on year to $234.4 million, improving on the 10.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Box Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.32%.

Looking at Box's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 9.92% year on year, beating analyst estimates by 0.59% and 8x8 reported revenues up 25.3% year on year, exceeding estimates by 0.27%. Dropbox traded up 1.96% on the results, 8x8 was flat on the results. Read our full analysis of Dropbox's results here and 8x8's results here.

Tech stocks have been under pressure since the end of last year and software stocks have been swept alongside with it, with share price down on average 19% over the last month. Box is down 20.6% during the same time, and is heading into the earnings with analyst price target of $32.3, compared to share price of $25.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.