Bull of the Day: Boxlight (BOXL)
Boxlight Corporation (BOXL) is expected to see double digit revenue growth in 2019 and 2020. This Zacks Rank #1 (Strong Buy) posted a big earnings beat in the fourth quarter.
Boxlight provides technology solutions for the global learnings market. It develops software, classroom technologies, professional development and support services to help educators.
A Big Beat in Q4 2018
On Mar 28, Boxlight reported its fourth quarter 2018 and full year results. It beat the Zacks Consensus Estimate by 9 cents reporting a loss of $0.06 versus the consensus of a loss of $0.15.
Revenue jumped 125% to $12 million in the quarter, ahead of the company's guidance of $11 million. That's a big turnaround from the $5.3 million in sales in the fourth quarter of 2017.
It saw greater adoption of the company's product solution suite.
Gross profit also improved to 25.2%, up from 11.3% in the year ago period.
The company's net loss on the quarter also shrank to $0.6 million from $4.6 million a year ago, a decrease of 87%.
Bullish on 2019's Revenue Gains
In guidance for 2019, given its current business pipeline, backlog and contracts, Boxlight expects 2019 revenue to increase by at least 25% over 2018, which was $37.84 million.
Gross margins are also expected to remain in the 25-30% range as it expects higher margin hardware, software and professional services to contribute more heavily to revenue.
Estimates Revised Higher
After the earnings report, 2 estimates were revised higher for 2019 pushing the 2019 Zacks Consensus Estimate up to a loss of $0.38 from a loss of $0.41. In 2018, it lost $0.39.
Analysts expect sales to jump 24.9% in 2019, in line with the company's guidance, and another 21.6% in 2020.
Shares Soar Triple Digits Year-to-Date
It's been a wild ride since the 2017 IPO.
Shares sank in the stock market correction at the end of 2018 and have since rebounded 171%.
They're still trading under $5, however, and are volatile.
This is a micro-cap stock with a market cap of just $34 million.
But if you're looking for a big growth small cap stock, and can handle the volatility, Boxlight is one to keep on your short list.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Click to get this free report
Boxlight Corporation (BOXL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.