Box, Inc. BOX is set to unveil its second-quarter financial results for 2025 on Aug 27.
Projected revenues for the quarter range between $268 million and $270 million, indicating a 3% increase from the previous year. The expected constant-currency growth stands at 6%. The Zacks Consensus Estimate sits at $269.19 million, reflecting a 3% uptick from the prior-year period.
Box anticipates non-GAAP earnings per share to fall between 40-41 cents. Industry consensus forecasts the metric to be at 40 cents, showcasing an 11.1% improvement from the previous year. Earnings projections have remained steady over the last month.
In recent quarters, Box’s earnings have exceeded the Zacks Consensus Estimate three out of four times, with an average beat of 4.12%.
The Landscape of Box, Inc. Price and EPS Surprise
Notable Factors to Consider
The continued utilization of Box’s Content Cloud platform by both new and existing clients is expected to have a positive impact on the company’s quarterly performance.
Enhanced security, compliance, data governance, and privacy features have likely propelled BOX’s Content Cloud forward, particularly resonating with government and private organizations.
Increasing demand for Box AI, bolstered by innovative AI functions, is projected to attract new customers.
Box’s technological collaboration with NVIDIA NVDA is predicted to contribute significantly to the forthcoming results. Through this partnership, NVIDIA’s NIM microservices facilitate the seamless integration of various AI models and capabilities within Box AI, assisting customers in unlocking value from their unstructured content.
Box’s ongoing efforts to enhance its content management capabilities are likely to yield favorable results.
The acquisition of Crooze, a provider of no-code enterprise content management applications, is expected to make a positive impact.
Further developments in Box Sign capabilities continue to provide essential support for customers’ validation processes and crucial transactions.
Box’s growing success in Enterprise Plus Suites is poised to enhance its attach rate and drive revenue growth for the current quarter.
However, escalating costs related to cloud infrastructure and sales and marketing are expected to remain a prevalent concern.
In addition, rising competition within the cloud industry may pose a significant challenge.
Insights from Our Model
Our analytical model does not definitively predict an earnings outperformance for BOX this time around. The intersection of a favorable Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat.
Presently, Box possesses an Earnings ESP of 0.00%. To explore the best opportunities to buy or sell prior to reporting, use our Earnings ESP Filter.
The current Zacks Rank stands at #3.
Recommended Stocks
Consider the following stocks, as they demonstrate the ideal composition for surpassing earnings estimates this season, according to our model.
Nutanix NTNX boasts an Earnings ESP of +7.48% and holds the existing Zacks Rank of #3. For the complete list of today’s Zacks #1 Rank stocks, see here.
Year to date, Nutanix’s shares have risen by 11.7%. NTNX is slated to announce its Q4 fiscal 2024 results on Aug 28.
Pure Storage PSTG boasts an Earnings ESP of +2.63% and currently holds a Zacks Rank of #3.
Year to date, Pure Storage’s stocks show a robust surge of 72.4%. PSTG is expected to unveil its Q2 fiscal 2025 results on Aug 28.
Stay informed on upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Identifies Top Semiconductor Stock
It stands at a fraction of the size of NVIDIA, which has skyrocketed over +800% since our endorsement. While NVIDIA remains a stalwart, this emerging chip stock offers vast potential for growth.
Positioned to cater to the surging demands for Artificial Intelligence, Machine Learning, and Internet of Things with its robust earnings growth and expanding clientele. The global semiconductor industry is projected to expand from $452 billion in 2021 to $803 billion by 2028.