Box, Inc.
BOX
is scheduled to report first-quarter fiscal 2022 results on May 27.
For the first quarter, the company expects revenues in the range of $200-$201 million. The Zacks Consensus Estimate for the same is pegged at $200.5 million, indicating an improvement of 9.2% from the year-ago reported value.
Further, the company anticipates non-GAAP earnings per share in the range of 16-17 cents. The consensus mark for earnings per share is pegged at 17 cents, indicating a 70% rise from the previous-year reported figure.
It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 52.7%.
Key Factors to Note
Box’ persistent efforts to expand the product portfolio are anticipated to have benefited fiscal first-quarter results.
The company’sintegration with
Microsoft
’s
MSFT
Office software suite, Microsoft 365,might have aided its performance. Notably, the company’s efforts included integrations with Teams and Box Shield with Office 365 as well as new advancements in Box for Microsoft Office Online and Box Connector for Microsoft Graph.
During the fiscal first quarter, the company launched the All-New Box Shuttle for seamlessly transferring large content to the Box Content Cloud. This move is expected to have supported the upcoming quarterly results.
Moreover, the introduction of Box Shield with advanced security features to prevent accidental data leaks and protect content cloud might have been another positive.
These endeavours might have driven Box’s customer momentum in the quarter to be reported.
Further,the Washington State Department of Health chose Box to provide critical information related to the ongoing pandemic to healthcare facilities by leveraging the latter’s cloud content management platform. The deal might have expanded its client base. With growing deployment of the platform, the company is expected to have expanded top-line growth.
However, rising cloud competition from players like
Alphabet Inc.
’s Google
GOOGL
and Microsoft might reflect on Box’s upcoming results. Also, investments in research and development may have dented margins and profits in the quarter to be reported.
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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Box has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.
Stock to Consider
Here’s a stock that you may consider as our model shows that it has the right combination of elements to beat on earnings this season.
Apple
AAPL
has an Earnings ESP of +1.97% and a Zacks Rank of 2, at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
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