BOX Gears Up to Report Q3 Earnings: What's in the Offing?

Box, Inc. BOX is scheduled to report third-quarter fiscal 2024 results on Dec 5.

For the fiscal third quarter, Box expects revenues of $261-$263 million, suggesting a 5% rise at the high end of the company's given range from the prior-year reported figure. The Zacks Consensus Estimate for the same is pegged at $262.03 million, indicating 4.8% growth from the prior-year quarter's reported value.

Box anticipates non-GAAP earnings per share of 37-38 cents. The consensus mark for the metric is pegged at 38 cents, suggesting an improvement of 22.6% from the previous fiscal year’s quarterly reported figure. Also, the bottom line has been unchanged over the past 30 days.

Earnings of BOX surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 8.38%.

Key Factors to Note

Box’s performance for the fiscal third quarter is likely to have benefited from the growing adoption of content cloud solutions by new and existing customers. Also, its strength in Enterprise Plus Suites is expected to have bolstered its attach rate during the to-be-reported quarter.

Strengthening multi-product offerings and deeper integrations might have contributed well in the underlined quarter.

Strengthening the momentum of Box AI might have been a positive

Growing momentum across government and private organizations is expected to have acted as a catalyst in the quarter under review.

Rising demand for digital transformation, data security, compliance and privacy in businesses is expected to have aided the to-be-reported fiscal quarter’s performance.

This apart, go-to-market strategies, including price optimization and packaging, might have supported Box’s performance in the fiscal quarter under review.

However, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the fiscal third quarter.

Mounting expenses related to investments in cloud infrastructure, sales and marketing and administration are likely to have dented profit margins in the quarter under discussion.

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, as elaborated below.

Box has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BOX carries a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

Core & Main CNM has an Earnings ESP of +3.86% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Core & Main is set to announce its third-quarter fiscal 2023 results on Dec 5. CNM shares have gained 84.3% year to date.

Aldeyra Therapeutics ALDX has an Earnings ESP of +23.71% and a Zacks Rank #2 at present.

Aldeyra Therapeutics is set to announce its third-quarter fiscal 2023 results on Dec 7. ALDX shares have declined 60.2% year to date.

Campbell Soup CPB currently has an Earnings ESP of +0.07% and a Zacks Rank #3.

Campbell Soup is set to announce its first-quarter fiscal 2024 results on Dec 6. CPB shares have lost 26.3% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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