Red Hat, Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Red Hat, Inc. (NYSE:RHT) will unveil its latest earnings on Wednesday, June 22, 2011. Red Hat, Inc. is engaged in providing open source software solutions. They are known for their version of Linux, Red Hat Enterprise Linux.

Red Hat, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of 16 cents per share, a rise of 14.3% from the same quarter a year ago. Estimates range from profit of 15 cents per share to net income of 18 cents per share. The consensus estimate is the same as three months ago. For the year, analysts are projecting profit of 71 cents per share, a rise of 18.3% from last year.

Past Earnings Performance: The company will look to avoid falling below estimates this quarter after beating forecasts last quarter. Last quarter, it beat expectations as it reported net income of 17 cents versus a mean estimate of profit of 16 cents.

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Wall St. Revenue Expectations: On average, analysts predict $253.6 million in revenue this quarter, a rise of 21.2% from the year ago quarter. Analysts are forecasting total revenue of $1.06 billion for the year, from last year’s revenue of $909.3 million.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy and two rating it as a sell. While the average rating for the stock remains a moderate buy, the strength of the rating has dwindled over the past three months.

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past four quarters. Over that span, the company has averaged growth of 21.4%, with the biggest boost coming in the most recent quarter when revenue rose 25% from the year earlier quarter.

The company has now seen net income rise in two straight quarters. In the fourth quarter of the last fiscal year, net income rose 43.4% from the year earlier. In the third quarter, the figure rose 58.5%.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), CA, Inc. (NASDAQ:CA), BMC Software, Inc. (NASDAQ:BMC), Novell, Inc. (NASDAQ:NOVL), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), EMC Corporation (NYSE:EMC), Hewlett-Packard Company (NYSE:HPQ), VMware, Inc. (NYSE:VMW), and Symantec Corporation (NASDAQ:SYMC).

Recent Price Movement: From two months ago, the stock price has fallen $3.85 (-8.5%) from $45.26 on April 18, 2011 to $41.41 on June 15, 2011. The stock price saw one of its best stretches over the last year between January 31, 2011 and February 8, 2011 when shares rose for seven-straight days, rising 7.6% (+$3.14) over that span. It saw one of its worst periods between January 18, 2011 and January 25, 2011 when shares fell for six-straight days, falling 12.5% (-$5.73) over that span. Shares are down $4.24 (-9.3%) year to date.

(Source: Xignite Financials)

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