Box Beats Analysts’ Expectations, Raises Fiscal 2022 Outlook


Box (BOX), the provider of cloud content management and file sharing service for businesses, announced strong fiscal first-quarter results. The share price rose 1.8% to close at $23.31 on May 28.

The company reported revenues of $202.4 million, which surpassed the Street’s estimates of $200.48 million and jumped 10% from the year-ago period.

Adjusted earnings soared 80% to $0.18 per share, beating the consensus estimate of $0.17 per share by a penny.

Billings increased 24% year-over-year to $159.4 million in the fiscal first quarter.

Box’s CFO Dylan Smith said, “As we build on this momentum and continue to focus on driving profitable growth, we’re well positioned to accelerate revenue growth over time and achieve our long-term financial targets.” (See Box stock analysis on TipRanks)

For fiscal Q2, the company expects revenue to be in the range of $211 million – $212 million, versus the consensus estimate of $209.5 million. On a non-GAAP basis, the company projects earnings per share of $0.17 – $0.18. The consensus estimate for the same is pegged at $0.19 per share.

For Fiscal 2022, Box has raised its revenue guidance to $845 million – $853 million versus the consensus estimate of $844.7 million. Non-GAAP earnings per share are expected in the range of $0.71 – $0.76 per share. The consensus estimate for the same stands at $0.80 per share.

Following the fiscal Q1 earnings release, Monness analyst Brian White maintained a Hold rating on the stock.

White said, “Given the longer-term implications from this crisis around how we work, combined with the stock’s modest valuation, Box may tempt value-oriented investors; however, industry dynamics have chiseled away at growth and dampened investor sentiment. We are raising our revenue estimates but remaining on the sidelines.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 5 Buys versus 2 Holds. The average analyst price target of $26.33 implies 13% upside potential to current levels. Shares have increased 24.7% over the past six months.

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