Box And U-Haul On The Move

It’s time to talk storage, both the physical and cloud type, as we recap earnings from the space. 📝

First, we’ll start with cloud storage company Box, which beat Wall Street’s expectations. Its first-quarter adjusted earnings per share of $0.32 on revenue of $251.9 million topped the $0.27 and $250 million anticipated. Billings, which reflects business under contract but not realized, also beat at $191.1 million vs. the $180 million estimate.

Executives focused on their profitable growth strategy, which includes existing improvements to the Box Content Cloud platform and future innovation with Box AI. In addition, they harped on their free cash flow growth of 19% YoY and reiterated their fiscal year 2024 target of revenue growth plus a free cash flow margin of 35%. 🎯

Along with that, they increased their full-year earnings estimate to $1.44-$1.50 per share from $1.42 to $1.45. However, their revenue range fell slightly from $1.05-$1.06 billion to $1.045 to $1.055 billion.

$BOX shares were up 3% after hours as they continued to claw back their post-earnings decline from March. ⛅

Moving to physical storage (no pun intended), U-Haul Holding Company also reported today. 📦

The company reported net earnings available to shareholders of $37.7 million, down from $86.7 million a year earlier. 🔻

Self-moving equipment rental revenues fell 6% YoY to $32.5 million, with revenue and average miles driven per transaction falling. Those declines were more prominent in one-way markets. Meanwhile, self-storage revenues rose 17% YoY to $28.4 million. Occupancy for all locations declined by 1.4% to 81.2%, with the company adding 6 million net rentable square feet (+12% YoY).

Fleet maintenance and repair costs rose $32.4 million YoY. Higher activity levels in prior years combined with a slower replacement of new equipment into its fleet caused the increase. 🛠️

Executives say that overall moving activity has returned to more historical trends. Self-storage has cooled over the last two years, but the company is still building and filling new units. Overall, the company is focused on building its long-term competitive position.

$UHAL shares fell 3% after hours as investors consider whether the company can weather a slowdown as well as executives hope it will. 🤔

More in   Earnings

View All

Headline Vs. Reality (Media Edition)

One of the perplexing things about markets is that sometimes headlines don’t necessarily match the reaction in markets. And that was certainly the case today in struggling media giant Warner Bros. Discovery. 📰

The Hollywood Reporter wrote an article boasting that Warner Bros became the first Hollywood conglomerate to turn a full-year streaming profit ($103 million).  

Read It

Carvana Careens To New Highs

The return of “left for dead” stocks continues as investors look for opportunities in the market beyond the “magnificent seven.” 🔍

Carvana is an excellent example of this turnaround story in action, with the stock posting its first-ever annual profit and catching several analyst upgrades. 💪

Read It

Plug Power Recharges Amid Market Rally

It was another day of records for the U.S. stock market as more and more stocks got snatched up in the bullish animal spirits. Let’s continue this week’s trend of pointing out the ragingly bullish action traders have been dealing with. 👇

Below is a chart of the S&P 500 showing prices rising for 16 of the last 18 months, posting a 25% rally since the end of October. It was also announced after the bell that Super Micro Computer and Deckers Outdoor will join the index, replacing Whirpool and Zions Bancorp. 📈

Read It