Red Hat Revenue Rises 15%, Top-Line View Boosted

23 Dec 2015 | Author: | No comments yet »

Red Hat Inc (RHT) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS.

Linux and open-source software distributor Red Hat (RHT) this afternoon reported fiscal Q3 revenue and earnings per share that modestly surpassed analysts’ expectations, despite the effect of the rising U.S. dollar crimping revenue, and raised its forecast for the full year. RHT 0.11 % said its revenue rose 15% in the latest quarter, though the open-source software provider’s results were dented by negative currency effects. Shares rose 5.4% to $83.12 in recent after-hours trading as per-share earnings, excluding certain one-time items, and revenue beat expectations and the company boosted its revenue outlook for the year.

CEO Jim Whitehurst called the results “strong,” adding that the company had “strengthened our leadership position in the open hybrid cloud by introducing new technologies and launching a strategic partnership with Microsoft (MSFT) and its Azure Cloud. This compares to an EPS of $0.42 and $455.90 million in revenue this period last year. “Our investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing,” explained Red Hat Inc. Our initiatives are focused on enabling our customers to build, deploy and manage their applications across multiple environments and infrastructures.” The stock increased 0.04% or $0.03 during the last trading session, hitting $78.8. Shares of Red Hat (NYSE:RHT) traded up 0.11% during midday trading on Thursday, reaching $78.86. 2,936,382 shares of the company’s stock were exchanged. For the fiscal year ending in February, Red Hat raised its revenue guidance to $2.044 billion to $2.048 billion, from its previous view for $2.034 billion to $2.044 billion.

Finally, Vetr lowered Red Hat from a buy rating to a hold rating and set a $82.66 price objective on the stock. in a research note on Tuesday, November 17th. Red Hat is a standard-bearer for open-source software, which is typically available in free versions whose programming instructions can be viewed, modified and distributed freely.

Overall for the quarter, Red Hat reported a profit of $46.8 million, or 25 cents a share, down from $47.9 million, or 26 cents a share, a year earlier. The open source development model allows it to use the collective input, resources and knowledge of a global community of contributors who can collaborate to develop, maintain and enhance software because the human-readable source code for that software is publicly available and licenses permit modification. Receive News & Ratings Via Email – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings with MarketBeat.com’s FREE daily email newsletter. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law.

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