Earnings To Watch: Box (BOX) Reports Q2 Results Tomorrow

Cloud content storage and management platform Box (NYSE:BOX) will be reporting earnings tomorrow afternoon. Here’s what to expect.

Box beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $264.7 million, up 5.1% year on year. It was a weak quarter for the company, with a miss of analysts’ billings estimates and full-year revenue guidance missing analysts’ expectations.

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% year on year to $269.2 million, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.

The majority of analysts covering the company have 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 three times over the last two years.

Looking at Box’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Dropbox delivered year-on-year revenue growth of 1.9%, meeting analysts’ expectations, and Pegasystems reported revenues up 17.7%, topping estimates by 8.1%. Dropbox traded up 3.3% following the results while Pegasystems was also up 12.7%.

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

Investors in the productivity software segment have had steady hands going into earnings, with share prices flat 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 $29 (compared to the current share price of $28).

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