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Will New Cloud Products Help Box (BOX) Beat on Q1 Earnings?

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Box, Inc. (BOX - Free Report) is set to report first-quarter fiscal 2019 results on May 30. In the last reported quarter, the company delivered a positive earnings surprise of 1.37%.

The surprise history has been impressive in Box’s case. The company surpassed estimates in three of the trailing four quarters, with an average four-quarter positive surprise of 11.88%.

The company's shares have increased 45.57% in the past 12 months, outperforming the industry’s gain of 23.92%.

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

Factors at Play

Box’s fiscal fourth-quarter loss of 6 cents was narrower than the Zacks Consensus Estimate. Revenues of $136.7 million were inline with the Zacks Consensus Estimate.

For the quarter to be reported, Box expects revenues in the range of $139-$140 million. We expect the company to continue delivering robust top-line growth in the fiscal first quarter, driven by strength across the international markets, including EMEA and Japan, and growing add-on products.

Also, the company has been continuously investing in security, compliance and administrative technology, and plans to hire more sales personnel. These investments and partnerships with leading enterprises, namely Cognizant, Google and Adobe among others, will help the company capitalize on the 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.

On a non-GAAP basis, the company projects loss per share in the range of 9-8 cents for the to-be-reported quarter.

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if these have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Box has a Zacks Rank #3 and an Earnings ESP of +1.37%, a combination suggesting that the company is likely to beat estimates.

Box, Inc. Price and EPS Surprise

 

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

Other Stocks to Consider

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

Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +3.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Michael Kors Holdings Limited has an Earnings ESP of +11.30% and a Zacks Rank of 2.

Microsemi Corporation has an Earnings ESP of +0.25% and a Zacks Rank #3.

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