Box Stock Is Rising Wednesday: What's Driving The Action?

Box Inc BOX shares are trading higher Wednesday after the company reported better-than-expected EPS and added $100 million to its buyback program. Here’s what you need to know.

• Q4 Revenue: $262.88 million, missed estimates of $262.97 million

• Q4 EPS: 42 cents, beat estimates of 38 cents

Total revenues were up 2% on a year-over-year basis. Billings were up 6% in the fourth quarter, coming in at $379.3 million. Remaining performance obligations totaled $1.305 billion as of Jan. 31. Net cash provided by operating activities was $89.3 million in the fourth quarter. Free cash flow came in at $81.8 million, up 10% year-over-year.

Box’s board also authorized an expansion of its stock repurchase program by $100 million.

“Box is at the center of some of the most important trends in technology history as companies look to digitize and automate their businesses, accelerate innovation with the power of AI and protect their most important data,” said Aaron Levie, co-founder and CEO of Box.

Outlook: Box sees first-quarter revenue in the range of $261 million to $263 million versus estimates of $260.96 million. The company expects fiscal-year 2025 revenue to be between $1.08 billion and $1.085 billion versus estimates of $1.088 billion.

Box anticipates first-quarter adjusted earnings of 35 cents to 36 cents per share versus estimates of 38 cents per share. The company anticipates fiscal-year 2025 adjusted earnings of $1.53 to $1.57 per share versus estimates of $1.70 per share.

In a separate press release, Box announced an expanded partnership with Microsoft Corp MSFT. Box said its new integration with Microsoft Azure OpenAI Service will bring its advanced large language models to Box AI, enabling Box customers to benefit from the most advanced AI models in the world. Box AI became generally available to customers on Enterprise Plus plans on Tuesday.

On Wednesday, JPMorgan analyst Pinjalim Bora maintained Box with an Overweight and raised the price target from $31 to $32. Citigroup analyst Steven Enders maintained a Buy rating and raised the price target from $29 to $32.

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BOX Price Action: Box shares were up 9.39% at $29.81 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.