Box Stock Is Tumbling Wednesday: What's Happening?

Box Inc BOX shares are trading lower Wednesday after the company reported worse-than-expected financial results and issued weak guidance. Several analysts also lowered price targets following the print.

• Q3 Revenue: $261.54 million missed estimates of $263.69 million
• Q3 EPS: 36 cents missed estimates of 38 cents

Revenues were up 5% year-over-year. Cash from operations came in at $72 million, up 3% year-over-year, and free cash flow totaled $58 million, up 6% year-over-year. 

"We continue to execute on our Content Cloud strategy, creating the only end-to-end platform that can help customers power their complete content lifecycle in a single architecture," said Aaron Levie, co-founder and CEO of Box.

"By demonstrating our product leadership with Box AI and Box Hubs, we are delivering the platform that customers need to meet the demands of the rapidly evolving era of AI-powered work."

Outlook: Box sees fourth-quarter revenue of $262 million to $264 million versus estimates of $266.96 million. The company expects fourth-quarter earnings to be between 38 cents and 39 cents per share versus estimates of 42 cents per share.

Box expects full-year revenue to be between $1.037 billion to $1.039 billion versus estimates of $1.04 billion. The company sees full-year earnings from $1.42 to $1.43 per share versus estimates of $1.49 per share.

Analyst Assessment:

• Keybanc analyst Thomas Blakey maintained Box with an Overweight and lowered the price target from $33 to $30.
• Morgan Stanley analyst Josh Baer maintained Box with an Overweight and lowered the price target from $35 to $32.
• Raymond James analyst Brian Peterson maintained Box with an Outperform and lowered the price target from $33 to $30.

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BOX Price Action: Box shares were down 9.97% at $24.03 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Box.