Box (BOX) Q1 Earnings: What To Expect

Cloud content storage and management platform Box (NYSE:BOX) will be reporting results tomorrow after market hours. Here’s what you need to know.

Box met analysts’ revenue expectations last quarter, reporting revenues of $279.5 million, up 6.3% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

Is Box a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Box’s revenue to grow 3.8% year on year to $274.7 million, slowing from the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Box has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Box’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dropbox’s revenues decreased 1% year on year, beating analysts’ expectations by 0.7%, and Pegasystems reported revenues up 44.1%, topping estimates by 33.1%. Dropbox’s stock price was unchanged after the resultswhile Pegasystems was up 28.8%.

Read our full analysis of Dropbox’s results here and Pegasystems’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 7.3% on average over the last month. Box’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $34.44 (compared to the current share price of $31.07).

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