Box BOX unveiled an exclusive partnership with Amazon’s AMZN cloud arm, Amazon Web Services, which will authorize organizations of all sizes to develop new applications and increase productivity with generative AI (Gen AI).
Box AI now offers direct access to foundation models for Box customers via Amazon Bedrock, starting with Anthropic's Claude and Amazon Titan.
This integration facilitates enterprises to quickly and securely create Gen AI applications by combining some of the world's most advanced AI models with their data residing in Box’s Intelligent Content Management platform.
Organizations can now obtain more information from their data by utilizing a Box connector for Amazon Q Business, assisting them in quickly obtaining answers, summarizing information, creating content, and securely completing tasks using their private data already managed in Box.
BOX Shares Ride on Strong Partner Base
BOX shares are benefiting from a rich partner base, which has aided in its top-line growth.
On a year-to-date basis, BOX shares have surged 25.6%, outperforming the broader Zacks Computer and Technology sector’s appreciation of 25.5% and the Zacks Internet - Software industry’s return of 22.3%.
Box, Inc. Price and Consensus
Box, Inc. price-consensus-chart | Box, Inc. Quote
This can be attributed to its growing expertise in cloud management and AI platforms while establishing a strong partner ecosystem with leading enterprise technology providers, such as Microsoft MSFT, Apple, IBM, Alphabet GOOGL and Salesforce.
BOX’s extended collaboration with Microsoft to integrate Azure OpenAI Service with Box AI is a notable development. It has teamed up with Alphabet to combine Google Cloud’s generative AI capabilities for boosting enterprise workflow.
The recent partnership with Apple to launch the new Box app for Apple Vision Pro is a plus. Box for Apple Vision Pro transforms how individuals experience and collaborate on content in the enterprise.
BOX’s international expansion through a strategic partnership with the Asahi Group Japan, The Norinchukin Bank and Hitachi High-Tech Corporation is a major positive. BOX AI will be deployed in these three organizations to enhance data management and consolidate unstructured data.
Noteworthy to mention, Box has been selected as Oxera’s cloud platform partner to manage and work with content across its enterprise. Box has been installed throughout Oxera to extract value from its unstructured content and satisfy business requirements regarding data security and compliance.
BOX Offers Positive Q3 Guidance
For third-quarter fiscal 2025, Box anticipates revenues in the range of $274-$276 million, indicating 5% year-over-year growth. This includes an expected forex headwind of approximately 130 basis points.
Box expects the fiscal third-quarter billings growth rate to be in the mid-single-digit range.
The Zacks Estimate for revenues is pegged at $275 million, indicating year-over-year growth of 5.2%.
On a non-GAAP basis, BOX projects earnings of 41-42 cents per share. The guidance includes an expected foreign exchange headwind of 2 cents.
The consensus estimate for earnings is pegged at 42 cents per share, up by a couple of pennies for the past 60 days. This indicates year-over-year growth of 16.7%.
Out of the trailing four quarters, BOX’s earnings beat the Zacks Consensus Estimate thrice and missed once, with the average surprise being 5.9%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Zacks Rank and Valuation
BOX shares are currently overvalued, as suggested by a Value Score of D.
The stock is trading at a premium with a forward 12-month Price/Sales of 4.07X compared with the industry’s 2.69X. Its expanding portfolio and rich partner base justify this premium.
BOX currently carries a Zacks Rank #2 (Buy), a favorable combination for investors to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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