What to Watch For in Dropbox’s Q3
File hosting service provider Dropbox is scheduled to release its most recent quarterly report after the markets close on Thursday.
Dropbox Inc. (NASDAQ: DBX) is scheduled to release its most recent quarterly report after the markets close on Thursday. Consensus estimates from Thomson Reuters are calling for $0.06 in earnings per share (EPS) and $352.57 million in revenue.
In its second quarter, the company beat expectations on both the top and bottom lines, but this was not enough for investors as there were some other factors at play in the report.
Despite the good numbers, the company announced that its chief operating officer, Dennis Woodside, was leaving the company. Woodside officially stepped down in early September after four years with the company. However, he is staying on as an advisor until the end of 2018.
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Also in this time, the company reported paying users totaled 11.9 million, as compared to 9.9 million for the second quarter last year. Average revenue per paying user was $116.66, as compared to $111.19 last year.
Overall, Dropbox has underperformed the market since it came public, with its shares down about 12% in this time. However, in the past month, the stock is up 10%.
A few analysts weighed in on Dropbox ahead of the report:
- Nomura has a Neutral rating and a $25 price target.
- Monness Crespi & Hardt has a Neutral rating.
- JMP Securities has an Outperform rating and a $37 target.
- Canaccord Genuity has a Buy rating and a $38 price target.
- RBC has an Outperform rating with a $33 price target.
- Jefferies has a Buy rating with a $37 price target.
Shares of Dropbox were last seen at $25.06, with a consensus analyst price target of $35.42. The stock has a post-IPO trading range of $21.36 to $43.50.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
