After the close on September 9, 2015, two popular brand name and high profile small cap companies are slated to report quarterly financials at a time that could prove to be a critical inflection point for both stocks.
Box, Inc. (NYSE:BOX) is reporting results for the fiscal quarter ending July 31, 2015 and Wall Street analysts are expecting the Company to announce a loss per share of ($0.29) on $70 million in revenue. Founded in 2005, Box bills itself as the world's leading enterprise software platform for content collaboration. The Company helps businesses of all sizes in every industry securely access and manage their critical information in the cloud.
It should be noted that since the Company went public at $14 per share in January it always traded above the IPO price—until the recent stock market correction. Since this is the first quarterly report for the Company while trading below the IPO price, Wall Street may be looking for an inflection point either in higher revenue or a narrower loss to feel confident, going forward. With the stock down and carrying a heavy short float of 34% investors may view any upside to the projected financials with relief in the near term and as a catalyst longer term in the hope that Box’s stock begins a long climb to the $20 level, where it opened earlier this year.
A stock market darling nearly a generation ago, popular doughnut producer Krispy Kreme (NYSE:KKD) reports financial results for its July 2015 quarter after the close on September 9, 2015. Krispy Kreme is a global retailer of premium-quality sweet treats, including its signature Original Glazed® doughnut. Headquartered in Winston-Salem, N.C., the Company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937. Krispy Kreme is proud of its Fundraising program, which for decades has helped non-profit organizations raise millions of dollars in needed funds. Krispy Kreme has more than 1,000 retail shops in 24 countries.
Market technicians probably like the stock as much as consumers considering its current and improving daily moving averages, and Relative Strength Index of around 51. Fundamental investors are likely drawn to the success the Company has enjoyed in the States, its initiatives abroad, and the projected earnings growth rate of 21% for the 2016 fiscal year by Wall Street analysts.
The stock has enjoyed a bounce off of its recent lows but the stock may need to surprise on the upside in order to continue its present momentum. Consensus earnings per share (EPS) for the period are projected to rise to $0.19 versus $0.13 a year ago on sales of $132 million a 9% rise from the same period in 2014 but the EPS range is $0.17 - $0.21 by the three analysts following it. That may indicate that some variability in the outlook for the period exists.