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Box, Inc (BOX) to Report Q2 Earnings: What's in the Cards?

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Box, Inc. (BOX - Free Report) is set to report second-quarter fiscal 2018 results on Aug 30. Last quarter, the company delivered a positive earnings surprise of 7.14%.

The surprise history has been good in Box’s case. The company surpassed estimates in each of the trailing four quarters with an average four-quarter positive surprise of 21.64%.

The company's shares have increased 41.3% year to date, outperforming the industry’s gain of 15.7%.

Let’s see how things are shaping up for this announcement.

Factors at Play

Box fiscal first-quarter loss was lower than the Zacks Consensus Estimate. However, revenues of $117.2 million increased 30% year over year and was above the Zacks Consensus Estimate, driven by strong growth in billings.

The company has been continuously investing in security, compliance and administrative technology, and has plans of hiring more sales personnel. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe among others, will help the company to capitalize on increasing adoption of cloud computing technologies and the need for secure collaboration.

However, continuous investments in research and development could dent margins as well as profits going ahead.

For the second-quarter fiscal 2018, the company expects to report revenues in the range of $121-$122 million and non-GAAP loss per share of 12 to 13 cents.

Earnings Whispers

Our proven model does not conclusively show that Box will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 13 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Box has a Zacks Rank #3. We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Box, Inc. Price and EPS Surprise

 

Box, Inc. Price and EPS Surprise | Box, Inc. Quote

Stocks to Consider

You could consider the following stocks with a positive Earnings ESP and a favorable Zacks Rank.

Catalent, Inc. (CTLT - Free Report) with an Earnings ESP of +2.43% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferroglobe PLC (GSM - Free Report) with an Earnings ESP of +42.86% and a Zacks Rank #2.

Oxford Industries, Inc. (OXM - Free Report) with an Earnings ESP of +1.41% and a Zacks Rank #2.

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