A month has gone by since the last earnings report for Box (BOX). Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Box due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Box Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y
Box reported third-quarter fiscal 2025 non-GAAP earnings of 45 cents per share, which beat the Zacks Consensus Estimate by 7.14%. The figure jumped 25% year over year.
Total revenues of $276 million surpassed the consensus mark by 0.32%. The top line increased 5% year over year (6% growth on a constant-currency basis).
Billings were $264.7 million for the reported quarter, increasing 10% year over year (9% growth on a constant-currency basis).
BOX’s Operating Results
The non-GAAP gross margin was 81.9%, expanding 460 basis points (bps) year over year.
Box’s operating expenses of $196.9 million increased 8.8% year over year.
On a non-GAAP basis, the company recorded an operating margin of 29.1%, which expanded 440 bps year over year.
BOX’s Balance Sheet & Cash Flow
As of Oct. 31, 2024, cash and cash equivalents were $608.8 million, up from $406.6 million as of Jul 31, 2024.
Non-current debt was pegged at $651.7 million at the reported quarter’s end compared with $371.8 million at the previous quarter’s end.
Box generated $62.6 million in cash from operations in the fiscal third quarter, down from $36.3 million in the previous quarter.
BOX offers Strong Guidance
For fourth-quarter fiscal 2025, Box expects revenues to be $279 million, suggesting a 6% rise year over year. The constant-currency growth rate is pegged at 7%.
On a non-GAAP basis, BOX projects earnings of 41 cents per share. The guidance includes an expected foreign exchange headwind of 2 cents.
For fiscal 2025, Box expects revenues of roughly $1.090 billion, indicating an increase of 5% from the prior year’s actual. The constant-currency growth rate is pegged at 7%.
BOX expects earnings of $1.70 per share for fiscal 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 28.89% due to these changes.
VGM Scores
At this time, Box has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Box, Inc. (BOX) : Free Stock Analysis Report
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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.
