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What To Expect From Box’s (BOX) Q4 Earnings

StockStory - Mon Mar 4, 1:01AM CST

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Cloud content storage and management platform Box (NYSE:BOX) will be reporting earnings tomorrow after the bell. Here's what to look for.

Last quarter Box reported revenues of $261.5 million, up 4.6% year on year, missing analyst expectations by 0.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter. Although its revenue was close to analysts' estimates, the company missed Wall Street's remaining performance obligations ("RPO"), billings, adjusted operating income, and EPS expectations.

Is Box buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Box's revenue to grow 2.5% year on year to $262.8 million, slowing down from the 9.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

Box Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Box's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 6% year on year, beating analyst estimates by 0.5% and Everbridge reported revenue decline of 1.2% year on year, exceeding estimates by 1%. Dropbox traded down 2% on the results, Everbridge was down 0.3%.

Read our full analysis of Dropbox's results here and Everbridge's results here.

There has been positive sentiment among investors in the productivity software segment, with the stocks up on average 3.7% over the last month. Box is up 8.4% during the same time, and is heading into the earnings with with analyst price target of $29.9, compared to share price of $28.4.

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