![]() Net loss (GAAP) was $465.5 million, as compared to a loss of $33.1 million in the same period last year, but $ 418.7 million of that is related to its IPO.Earnings per share (Adjusted) for the quarter: Dropbox reported $0.08.Revenue (GAAP) for the quarter: Dropbox reported $316 million, up 28% from the year before.Shares of Dropbox, which are up roughly 50% since the company's March IPO, fell 4% in after hours trading on Thursday following the report. The cloud storage company's revenue increased 28% in the first three months of the year, above the 24.5% clip expected by Wall Street.Īnd Dropbox said revenue in the second quarter would range between $328 million and $331 million, topping the $325.6 million expected by analysts. But with investors having already bid up the stock sharply in the first few weeks since its IPO, shares of Dropbox slipped slightly after the "beat-and-raise" report. They're looking for modest revenue gains, and also want to see growth in key areas like paid users.ĭropbox beat Wall Street's Q1 targets and gave a better-than-expected business forecast on Thursday in its first quarterly report card as a public company. Analysts had high expectations of Dropbox.Dropbox went public at the end of March and is now valued at $12.5 billion on the public markets.The company beat Wall Street's expectations across the board.The file sharing company Dropbox reported earnings for the first time ever on Thursday.Click to get this free reportĭropbox, Inc. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. ![]() Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.ĭropbox doesn't appear a compelling earnings-beat candidate. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Over the last four quarters, the company has beaten consensus EPS estimates four times.Īn earnings beat or miss may not be the sole basis for a stock moving higher or lower. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.įor the last reported quarter, it was expected that Dropbox would post earnings of $0.17 per share when it actually produced earnings of $0.22, delivering a surprise of +29.41%. So, this combination makes it difficult to conclusively predict that Dropbox will beat the consensus EPS estimate.ĭoes Earnings Surprise History Hold Any Clue?Īnalysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. ![]() On the other hand, the stock currently carries a Zacks Rank of #3. This has resulted in an Earnings ESP of 0%. How Have the Numbers Shaped Up for Dropbox?įor Dropbox, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate.
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