Red Hat Earnings: Everything You Must Know Now

Red Hat, Inc. (NYSE:RHT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Red Hat, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.14% to $0.36 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 17.13% to $347.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Red Hat, Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.3. It missed the average revenue estimate of $349.64 million.

Quoting Management: In a conference call with analysts, Red Hat CEO said the company’s optimistic about its future.

“Our competitive position remains enviable,” he told analysts. “Our technology road map is clear and we are in the early stages of multiple opportunities in substantial adjacent markets.”

Charles Peters, Red Hat’s chief financial officer, offered a more blunt assessment: “We didn’t see weakness (in the quarter). Our view is the business is strong.”

Key Stats (on next page)…

Revenue increased 1.25% from $343.61 million in the previous quarter. EPS increased 24.14% from $0.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.32. For the current year, the average estimate is a profit of $1.17, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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