Box, Inc. is preparing to unveil its second-quarter fiscal 2025 results on Aug 27.
Expectations are set with revenues projected to land between $268 million and $270 million, indicating a potential 3% uptick at the higher end from the previous fiscal year. The anticipated constant-currency growth rate stands at 6%. Market consensus places the figure at $269.19 million, signaling a 3% increase from the same quarter last year.
Box forecasts non-GAAP earnings per share to fall within the 40-41 cent range. Analysts predict 40 cents, showcasing an 11.1% enhancement compared to the previous year. Notably, the bottom line has remained stable over the past month.
In the preceding four quarters, Box managed to outshine the Zacks Consensus Estimate in three instances, falling short once with an average margin just north of 4%.
Box, Inc. Price and EPS Surprise
The surge in Box’s Content Cloud platform adoption among both current and new customers is expected to catalyze the company’s performance in the ongoing quarter.
Enhancements in security, compliance, data governance, and privacy features within BOX’s Content Cloud likely fueled the company’s traction among various governmental and private entities during the quarter.
The increasing demand for Box AI, propelled by advanced AI functionalities, possibly drew in new clientele.
Box’s collaboration with NVIDIA might have significantly impacted the upcoming results, as NVIDIA’s NIM microservices seamlessly integrate multiple AI models and capabilities into Box AI, unlocking unstructured content value for consumers.
Moreover, Box’s continual efforts to bolster its content management capabilities are likely to yield positive results.
The acquisition of Crooze, a provider of no-code enterprise content management applications, is expected to have made significant contributions.
Further, the improved features of Box Sign are likely to continue supporting clients with validation processes and crucial transactions.
Box’s escalating traction in Enterprise Plus Suites could have bolstered its attach rate, propelling revenue growth in the ongoing quarter.
However, escalating costs associated with cloud infrastructure and sales/marketing may have posed consistent challenges this quarter.
Moreover, intensifying competition within the cloud industry could represent a substantial risk.
Insights from Our Model
Our analysis doesn’t definitively project an earnings beat for BOX this time. A combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. Box holds an Earnings ESP of 0.00% with a current Zacks Rank #3.
Stocks To Watch
Considering our model, here are some stocks with strong potential to outperform in this season:
Nutanix comes with an Earnings ESP of +7.48% and presently sports a Zacks Rank #3. Nutanix has seen its shares rise by 11.7% year-to-date and is slated to reveal its fourth-quarter fiscal 2024 results on Aug 28.
Pure Storage boasts an Earnings ESP of +2.63% and holds a Zacks Rank #3. Pure Storage’s shares have surged by 72.4% year-to-date and is set to report its second-quarter fiscal 2025 results on Aug 28.
Stay informed about upcoming earnings releases using the Zacks Earnings Calendar.
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