Box Stock Falls From Record Close After Earnings Report

By Jeremy C. OwensMarketsMarketWatch Pulse

Box Inc. shares fell in late trading Wednesday after the cloud-software company beat earnings expectations for the final quarter of its fiscal year, but predicted the current quarter would not live up to analysts' expectations. Box reported a net loss of $36.9 million, or 28 cents a share, on revenue of $109.9 million, as well as billings -- an important metric in cloud software that represents contracts for future revenue -- of $159.3 million. Analysts polled by FactSet on average expected Box to report adjusted losses of 13 cents a share on sales of $108.8 million, and billings of $153.2 million. While Box's fiscal fourth quarter was better than expected, the company's predictions for the fiscal first quarter and 2018 fiscal year were not. Box said it expects first-quarter revenue to be in a range of $114 million to $115 million, with adjusted net losses of 14 cents to 15 cents a share. For the full fiscal year, Box predicts it will have adjusted losses of 45 cents to 49 cents a share on revenue of $500 million to $504 million. Analysts' average forecast for Box's current quarter called for an adjusted loss of 12 cents a share and revenue of $115.3 million, while fiscal year forecasts called for adjusted losses of 41 cents a share on sales of $500.6 million, according to FactSet. Box shares declined about 3% in immediate after-hours trading following the release of the earnings report, after gaining 3.6% in the regular session to $18.26, a record closing high for the company.

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