BOX stock fell more than 10% late Tuesday after the cloud storage company posted a third-quarter earnings miss and offered sales guidance for the current quarter below expectations.
For its fiscal third-quarter ending in October, Box said it earned an adjusted 36 cents per share on sales of $262 million. Analysts were expecting Box to earn 38 cents per share with $262 million in revenue, according to FactSet. Sales climbed 5% year over year and earnings increased 16%.
Further, Box projected revenue of $263 million for its fiscal fourth-quarter. Analysts polled by FactSet were expecting $267.5 million.
On the stock market today, Box stock fell 11% at 23.76 in recent after-hours trading.
Box Stock: AI Push
The 18-year-old Box sells a suite of cloud-storage software tools that are used by 67% of the Fortune 500. The company launched its Box AI platform earlier this year.
"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," Chief Executive Aaron Levie said in a news release.
Further, the California-based firm said its profit has hurt by unfavorable exchange rates. About one-third of the Box's revenue is generated outside the U.S.
But the negative reaction to earnings Tuesday adds to a rough year for Box. Box stock holds a weak Relative Strength Rating of 36 out of a best-possible 99, according to IBD Stock Checkup. The rating compares a stock's price over the last 52 weeks with that of all other stocks in IBD's database.
