Cloud content storage and management platform Box (NYSE:BOX) will be announcing earnings results tomorrow after market close. Here's what you need to know.
Last quarter Box reported revenues of $261.4 million, up 6.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter. Full-year revenue guidance was slightly lowered and also missed Wall Street's estimates. Lastly, non-GAAP operating profit for the full year was also below 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 4.8% year on year to $262 million, slowing down from the 11.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
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 missed Wall St's revenue estimates twice over the last two years.
Looking at Box's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 7.1% year on year, beating analyst estimates by 0.8% and UiPath reported revenues up 24% year on year, exceeding estimates by 3.3%. Dropbox traded up 1.1% on the results, and UiPath was up 8.4%.
Read our full analysis of Dropbox's results here and UiPath's results here.
There has been positive sentiment among investors in the productivity software segment, with the stocks up on average 14.3% over the last month. Box is up 7.9% during the same time, and is heading into the earnings with analyst price target of $31.6, compared to share price of $26.8.
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The author has no position in any of the stocks mentioned.