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What’s in the Cards for Box, Inc. (BOX) in Q3 Earnings?


Box, Inc. BOX is set to report third-quarter fiscal 2017 results on Nov 30. Last quarter, the company posted a positive earnings surprise of 21.62%.

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

Factors at Play

Box incurred fiscal second-quarter loss of 29 cents per share, lower than the Zacks Consensus Estimate by 21.62%. However, revenues of $95.7 million were up 30.0% year over year driven by strong growth in billings.

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 and Adobe among others, will enable 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 third quarter of fiscal 2017, the company expects to report revenues in the range of $100–$101 million and non-GAAP loss per share of 20 cents to 19 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 35 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 seeing negative estimate revisions.

BOX INC-A Price and EPS Surprise

BOX INC-A Price and EPS Surprise | BOX INC-A Quote

Stocks to Consider

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

Supernus Pharmaceuticals, Inc. SUPN with an Earnings ESP of +30.77% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

PVH Corp. PVH with an Earnings ESP of +0.41% and a Zacks Rank #2.

Windtree Therapeutics, Inc. WINT with an Earnings ESP of +22.70% and a Zacks Rank #2.

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