Box Shares Rise as Analysts Laud Strong Quarter

Box shares rose following its earnings beat. Here's what analyst firms are saying about the quarter.
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Content-management platform Box (BOX) - Get Report shares jumped on Thursday following its second-quarter-earnings beat.

Wall Street analysts were bullish on the company following the release. Here's what Wall Street is saying:

William Blair analysts maintained their outperform rating, citing "a strong pipeline of six-figure deals going into the third quarter." 

Raymond James analyst Brian Peterson also has an outperform rating and a $24 price target on the company. 

He noted that the company's adjusted 15-percentage-point wider operating margin year over year "isn't coming at the detriment of growth, as revenue/billings topped expectations benefiting from a 10% improvement in sales productivity."

Berenberg's buy rating and $25 price target are based on the company's ability to deliver revenue growth while also improving profitability. "We believe this dynamic warrants a higher multiple to be placed on Box," wrote analyst Brett Knoblauch. 

Knoblauch also says the coronavirus pandemic has acted as both a headwind and tailwind for Box as smaller and medium-sized clients drop off but larger companies increase demand. 

Box reported a GAAP net loss of a nickel a share, narrowed from 25 cents in the year-earlier quarter. Shares outstanding rose 5.2% to 154.7 million.

Adjusted profit of 18 cents a share compared with break-even a year earlier. Revenue jumped 11% year over year to $192.3 million. 

Analysts surveyed by FactSet were expecting the company to report adjusted earnings of 12 cents a share on revenue of $189.6 million. 

The company also raised its full year revenue forecast to as much as $770 million, with third-quarter revenue expected to range $193 million to $195 million. 

Analysts are expecting full year revenue of $765 million with third-quarter revenue of $199 million. 

Box shares at last check were up 5.1% to $20.28.