A month has gone by since the last earnings report for Box (BOX Quick QuoteBOX - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Box Q3 Earnings and Revenues Top Estimates, Rise Y/Y

Box, Inc. reported fiscal third-quarter 2021 earnings per share of 20 cents, which surpassed the Zacks Consensus Estimate of 14 cents. The company recorded a loss of $0.01 per share a year ago.

Total revenues came in at $196 million, surpassing the consensus mark by 1.01%. The top line increased 10.6% year over year and was above the guided range of $193-$195 million.

Despite strong fiscal third-quarter results, its share price was down 0.8% due to weaker-than-expected revenue guidance.

The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.

Also, strength in financial services and health-care organizations’ sales aided growth for the quarter. In addition, strong demand for its add-on products and high volume of large enterprise deals were positives.

The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.

Let’s delve deeper into the numbers.

Billings and Deferred Revenues

Billings were $185.5 million, up 7.9% year over year. Deferred revenues were $354.4 million, up 8.8% from the year-ago quarter.

Operating Results

Non-GAAP gross profit for the fiscal third quarter was $143.9 million, up 14.8% year over year.

Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $141.8 million decreased 11.4% year over year.

On a non-GAAP basis, the company recorded operating income of $35.2 million versus operating loss of $0.5 million a year ago. Operating margin was 18%, up 1,800 basis points year over year.

Balance Sheet and Cash Flow

At quarter-end, cash and cash equivalents, and accounts receivables balance were $275.4 million and $115.7 million compared with $271.9 million and $123 million, respectively, at fiscal second quarter-end.

Net cash provided by operations was $45.1 million and free cash flow was $26.2 million for the fiscal third quarter.

Guidance

For the fourth quarter of fiscal 2021, Box expects revenues between $196 million and $197 million. On a non-GAAP basis, the company projects earnings per share within 16-18 cents. GAAP loss per share is expected within 8-6 cents.

For fiscal 2021, Box’s revenue guidance is expected within $768-$769 million. On a non-GAAP basis, it projects earnings per share in the range of 64-66 cents. GAAP loss per share is expected in the range of 32-30 cents.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 5.41% due to these changes.

VGM Scores

Currently, Box has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.