Why Box Shares Are Rising

Box Inc BOX is trading higher Wednesday after the company announced better-than-expected fiscal third-quarter 2022 financial results, issued guidance and increased its buyback. 

Box reported quarterly earnings of 22 cents per share, which beat the estimate of 21 cents per share. The company reported quarterly revenue of $224 million, which beat the estimate of $218.49 million.

Box expects fiscal fourth-quarter earnings of 22 to 23 cents versus the estimate of 22 cents. The company expects revenue to be in a range of $227 million to $229 million versus the estimate of $222.93 million.

Box increased its stock repurchase program by $200 million, increasing the aggregate amount of its approved share buyback programs to $700 million.

"Our strong third quarter results show the continued momentum of our long-term growth strategy, as more customers are turning to the Box Content Cloud to deliver secure content management and collaboration built for the new way of working," said Aaron Levie, co-founder and CEO of Box.

"The confluence of remote work, digital transformation and cybersecurity challenges is causing enterprises to rethink how they work with their content. We believe Box’s leadership in the Content Cloud market is driving the acceleration of our growth and the expansion of our customer footprint," Levie added.

Analyst Assessment: Multiple analyst firms weighed in on the stock following Box's financial results:

• Keybanc analyst Steve Enders maintained Box with an Overweight rating and raised the price target from $29 to $30.
• Raymond James analyst Brian Peterson maintained Box with an Outperform rating and raised the price target from $29 to $30.
• Morgan Stanley analyst Josh Baer maintained Box with an Equal-Weight rating and raised the price target from $29 to $30.
• Craig-Hallum analyst Chad Bennett maintained Box with a Buy rating and raised the price target from $31 to $38.

Related Link: Analysts See Up To 62% Upside In Box Post Q3 Beat

BOX Price Action: Box has traded as high as $27.40 and as low as $16.62 over a 52-week period.

The stock was up 13.20% at $26.53 at time of publication.