Red Hat Down Nearly 9% After Q3 Earnings Report

The shares of Red Hat

have been under heavy pressure today after the company reported its third quarter results yesterday. Red Hat reported Q3 EPS of $0.28 vs $0.26 estimate and revenues of $290.00M vs $289.62M estimate. As a result, Citigroup and Piper Jaffray lowered Red Hat's price target this morning. The company's CFO commented on the results saying “We continued to deliver consistent performance across our business which resulted in strong growth in our key financial metrics. At the same time, we continued to invest in strategic growth initiatives. When compared to the first three quarters of last fiscal year, our year-to-date revenue, non-GAAP operating income and operating cash flow are up 26%, 35% and 35%, respectively.” Red Hat is currently trading at $41.95, down $4.10 or 8.90%.