Red Hat Earnings: Here’s Why Investors are Selling Shares Now
Red Hat, Inc. (NYSE:RHT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.8%.
Red Hat, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 25% to $0.35 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 16.06% to $374.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Red Hat, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $372.07 million.
Quoting Management: “We are a market leader for new innovations based on open source technologies that are driving the transformation of the data center toward an open, hybrid cloud infrastructure,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “We recently added infrastructure-as-a-service, Red Hat Enterprise Linux OpenStack Platform, to our portfolio of cloud offerings. The combination of this powerful technology with our platform-as-a-service, open software-defined storage and cloud management solutions create a compelling road map for our customers in the move to cloud computing.”
Key Stats (on next page)…