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What Analysts Expect from Dropbox in Q1 2019

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Revenue growth of 20.6% in the first quarter

Cloud storage company Dropbox (DBX) is scheduled to report its first-quarter results on May 9. Analysts expect the company to post revenues of $381.6 million in the first quarter, a rise of 20.6% year-over-year, compared to revenues of $316.3 million in the first quarter of 2018.

Dropbox’s sales are expected to grow 16% to $444 million in the first quarter of 2020.

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Earnings per share

While Dropbox’s sales are expected to rise over 20%, analysts expect the company’s non-GAAP EPS to fall 12.5% in the first quarter to $0.07, indicating low operating leverage.

Dropbox has managed to beat analysts’ earnings estimates in each of the last four quarters. The company posted EPS of $0.10 in the fourth quarter, 25% higher than analysts’ estimate of $0.08. The company posted EPS of $0.11 in the third quarter, 83% higher than the estimate of $0.06.

As the above chart shows, Dropbox beats its earnings estimate of $0.07 in the second quarter with reported earnings of $0.11. The company also beat analysts’ consensus earnings estimate of $0.05 by 60% with EPS of $0.08 in the first quarter of 2018.

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