Box’s Earnings Report: What You Need to Know

Box, Inc $BOX is set to publish Q3 Earnings Report on Wednesday, November 28th, after market close.


Company Background:

Box, Inc is a direct competitor to Dropbox, and provides cloud content management platform that enables organizations of various sizes to manage and share their enterprise content from anywhere or any device. The company’s Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features.


$BOX has been an intriguing name since its public debut back in 2015. Since then the company’s revenue has grown at an impressive annual rate of 32%. Yet due to increasing competition, Box’s rate of growth has cooled off in recent times, reaching just 20% in the second quarter. And that’s despite secured strategic partnerships with the likes of Microsoft $MSFT, IBM $IBM and Google $GOOGL, among other giants. The management has been investing in ways to grow and to continuously improve the platform. But with downbeat billings growth, there is now the fear of the company throwing good money after bad.


Box’s CFO, Dylan Smith, sold 15,000 shares in a transaction that occurred on September 10th. The shares were sold at an average price of $24.71, for a total value of $370,650. According to the transaction, Smith now owns 1,169,274 shares in the company, valued at $28,892,760.54.


A number of hedge funds and other institutional investors have recently made changes to their positions on the stock. Belpointe Asset Management LLC acquired a new stake in BOX in the third quarter worth $132,000. Vanguard Group Inc. raised its holdings in BOX by 7.3%, Also., during the third quarter, Garde Capital Inc. raised its holdings in BOX by 58.1% and B. Riley Wealth Management Inc. acquired a new stake in BOX worth $215,000. Finally, Glenmede Trust Co. NA raised its holdings in $BOX by 59.8% in the third quarter.


$BOX last posted earnings on Tuesday, August 28th. The company reported a decrease of $0.05 earnings per share for the quarter, beating the Zacks’ consensus estimate of a $0.06 loss. The business had revenue of $148.20 million for the quarter, compared to analysts’ expectations of $146.58 million.


Deutsche Bank issued a “hold” rating and a $22.00 target price on the stock. JMP Securities reaffirmed an “outperform” rating and set a $32.00 price objective on shares of $BOX. Morgan Stanley decreased their price objective on shares of BOX from $25.00 to $21.00 and set a “hold” rating on the stock in a research note on Tuesday, November 20th. ValuEngine cut shares of BOX from a “strong-buy” rating to a “buy” rating. Rosenblatt Securities reaffirmed a “hold” rating and set a $25.00 price objective on shares. Finally, five analysts from Wall Street have rated the stock with a “hold” rating, seven have assigned a “buy” rating and one has assigned a “strong buy” rating to the company. The stock presently has an average rating of “Buy” and a consensus target price of $26.57 which is almost 54% greater than the current price.


Wall Street’s Estimates

EPS (Average Estimate): -$0.7/share

Q3 Revenue (Average Estimate): $154.54M

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