Box (NYSE:BOX) shares are up nearly 3% in the early session today after the cloud content management platform provider delivered an impressive fourth-quarter performance. Revenue increased by 2.6% year-over-year to $263 million. Further, EPS of $0.42 outpaced expectations by $0.03. The company also expanded its share repurchase program by $100 million.
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Box continues to benefit from the broader trends of digitization and automation at enterprises. During the quarter, billings rose by 6% year-over-year to $379.3 million. The company’s Remaining Performance Obligations (RPO) stood at $1.3 billion at the end of January 2024. Importantly, Box’s free cash flow improved by 10% to $81.8 million.
For Fiscal Year 2025, Box expects revenue of $1.08 billion to $1.085 billion. EPS for the year is anticipated to be between $1.53 and $1.57. For the upcoming quarter, the company foresees revenue in the range of $261 million to $263 million. EPS for the quarter is seen landing between $0.35 and $0.36.
Is Box a Good Stock to Buy?
Today’s price gains come on top of a nearly 14% rise in Box’s share price over the past three months. Overall, the Street has a Strong Buy consensus rating on Box, and the average BOX price target of $31.83 implies a further 16.8% potential upside in the stock. However, it’s worth noting that estimates will likely change following today’s earnings report.
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