U.S. equities had a broadly bullish day Wednesday, led by a 0.8% move higher by the technology sector. The S&P 500 Index improved by 0.5%, the Dow Jones Industrial Average wafted 0.1% higher and the Nasdaq Composite surged by 1.1%.
Once again, earnings take center stage. As we head into Thursday’s trade, Box Inc (NYSE:BOX), Workday Inc (NYSE:WDAY) and Dollar General Corp. (NYSE:DG) are all on the move following their quarterly reports.
Here’s what you need to know this morning:
Box Inc (BOX)
BOX shares are falling early Thursday after the cloud company beat earnings, but had to make a dubious admission.
The cloud services provider posted a second-quarter adjusted loss of 11 cents per share, which was 2 cents narrower than analysts’ predictions. It was also better than the 14-cent loss it recorded in the year-ago quarter. Meanwhile, the GAAP operating loss was $39 million, or 30 cents per share.
Revenues underwhelmed, however. The top line grew by 28% year-over-year, but $122.9 million in sales wasn’t enough to eclipse Wall Street estimates for $124.34 million. Billings were up 31% year-over-year, however, to $139.5 million.
Box also reported that it has gone back to bleeding cash. The company was cash-flow positive in its previous two quarters, but Box revealed that cash flow came to negative $14.7 million.
The company also disappointed on the guidance front. Box expects an adjusted loss between 13 and 14 cents per share for the third quarter, with the midpoint missing estimates of a 13-cent loss. And while Wall Street was looking for $131.6 million in Q3, Box is forecasting a range of $128 million to $129 million.
BOX stock is off nearly 5% this morning.
Dollar General Corp. (DG)
Another retailer, another down day.
DG shares are off this morning despite top- and bottom-line beats in its second-quarter report, as well as better-than-expected comparable-store sales.
Dollar General reported a 4% decline in net income to $294.8 million ($1.08 per share). On an adjusted basis, DG’s $1.10 per share in profits were a penny better than the consensus estimate. Meanwhile, revenues grew 8% to $5.83 billion, which was $30 million better than Wall Street’s expectations.
The company also was able to squeeze more out of stores open more than 12 months, with the company’s comps coming in 2.6% higher. Wall Street was expecting a 1.6% improvement.
The road ahead looks better, too. Dollar General raised its full-year earnings forecast from a range of $4.25-$4.50 per share to a range of $4.35-$4.50 per share. It also sees comps coming in near the high end of its forecast range of “slightly positive to an increase of two percent.”
Nonetheless, DG stock is headed more than 3% lower in Thursday’s early trade.
Workday Inc (WDAY)
WDAY shares are crawling higher after it reported a positive second quarter.
The finance and human resources software company lost 40 cents per share in its second quarter, which was 27% better than its year-ago loss. On an adjusted basis, Workday earned 24 cents per share versus a 4-cent loss in the year-ago period, topping Wall Street’s prediction of 15 cents in adjusted profits.
Meanwhile, its quarterly revenues jumped by 41% to $525.3 million. Analysts on average were looking for $507 million on the top line. Subscription revenues rose 42% to $434.5 million.
In the current quarter, subscription sales are slated to grow 33% to 34% year-over-year, to a range of $450 million and $452 million, easily topping analyst expectations of $435 million.
Other highlights include operating cash flows of $15.1 million, and cash, cash equivalents and marketable securities of $2.1 billion. The company was free cash flow-negative for the quarter, however, shedding $23.4 million.
WDAY shares are off marginally this morning.