Box stock edged closer to a buy point Thursday, after the company reported third-quarter results that showed a slight beat on the top and bottom lines. Box results were buffeted by economic headwinds.
Late Wednesday, the company reported adjusted earnings of 31 cents a share on revenue of $250 million. Analysts expected Box to report adjusted earnings of 30 cents a share on revenue of $251 million.
Box stock climbed 6.5%, closing at 29.22 on the stock market today. Box stock has a buy point of 29.55.
The company specializes in the field of cloud-based business collaboration and content management services and software.
For its fourth quarter, Box expects revenue to be in the range of $255 million to $257 million. The midpoint of $256 million is below estimates of $259 million. Further, it expects adjusted fourth-quarter earnings of 35 cents a share, above estimates of 33 cents.
Analysts note that Box remains under pressure from economic headwinds and tighter spending on information technology.
Box Stock: Concerns Over Economic Headwinds
"On one hand, we're impressed by Box's resiliency in this environment despite worsening macro headwinds," RBC Capital Markets analyst Rishi Jaluria said in a note to clients. "On the other hand, we worry macro headwinds will soon catch up to Box."
"We delivered strong third-quarter results with revenue growth of 12% year-over-year and record operating margins," Chief Executive Aaron Levie said in a written statement with the Box earnings release.
"Box is very well-positioned to execute through these dynamic times. As we continue to build an enduring business for the long run, we remain hyper-focused on driving growth and even greater profitability," Levie said.
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