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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.