Box Stock Gains Ground Ahead Of Q3 Earnings: Retail Takes A Cautious Stance

Redwood City, California-based Box, Inc. is scheduled to report its fiscal year 2025 third-quarter results after the market closes on Tuesday, and retail mood toward the stock was subdued.

The content management platform company is widely expected to report non-GAAP earnings per share (EPS) of $0.42, compared to $0.36 a year ago, and the guidance of $0.41-$0.42. 

The consensus revenue estimate is $275.44 million, while the company guided the topline to $274 million-$276 million. 

At the end of the second quarter, the remaining performance obligations, including deferred revenue and backlogs, climbed 12% year-over-year (YoY) to $1.272 billion. Second-quarter billings rose 10% to $256.4 million. 

Last week, JPMorgan analysts said they expect Box to deliver a “consistent” quarter on a constant currency basis, with signals of growth stabilizing or inflecting higher, the Fly reported. That said, the analysts cautioned about a stronger dollar impacting the guidance.

The firm said the current consensus estimate for the fiscal year 2026 “likely presents a high bar for Box to clear.” 

The strong stock run creates a challenging near-term setup but the medium- and long-term thesis remains intact as Box is well positioned as the unifying content layer between collaboration tools as well as enterprise applications, it added.

JPMorgan has an ‘Overweight’ rating for Box shares. 

For the full year, Box expects non-GAAP EPS of $1.64-$1.66 and revenue of $1.086 billion-$1.09 billion. 

In premarket trading, as of 7:49 a.m. ET, Box shares rose 0.14% to $35.16. The stock has gained 37% for the year. 

An earnings call has been scheduled for 5 p.m. ET.

BOX sentiment and message volume December 3, 2024, premarket as of 7:49 am ET | Source: Stocktwits

On Stocktwits, sentiment toward the stock remained ‘neutral’ (47/100), although message volume continued to be ‘extremely high.’

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