Box (BOX) Reports Earnings Tomorrow. What To Expect

Petr Huřťák /
2022/11/29 4:09 am EST

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

Last quarter Box reported revenues of $246 million, up 14.6% year on year, in line with analyst expectations. It was an ok quarter for the company with revenue guidance for the next quarter roughly in line with 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 12.3% year on year to $251.6 million, slowing down from the 14.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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 1.26%.

Looking at Box's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Dropbox delivered top-line growth of 7.41% year on year, beating analyst estimates by 0.82% and Appian reported revenues up 27.5% year on year, exceeding estimates by 1.52%. Dropbox traded up 4.88% on the results, and Appian was down 15.8%. Read our full analysis of Dropbox's results here and Appian's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.22% over the last month. Box is down 3.4% during the same time, and is heading into the earnings with analyst price target of $33.00, compared to share price of $28.06.

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.