Red Hat Surges 8% on Q4 Earnings Results

Enterprise software company Red Hat

released its fiscal fourth quarter earnings results on Wednesday after the closing bell. The company reported non-GAAP earnings per share of $0.29 versus $0.26 in the year ago period. This came in ahead of Wall Street consensus EPS estimates of $0.27. Revenues for the quarter rose 21% to $297 million, which also beat analysts' consensus estimates of $291 million. The strong beat was driven in large part by a 22% increase in subscription revenue to $255.2 million in the fourth quarter. CFO Charlie Peters said that the company “experienced impressive breadth and depth of demand for our technologies this quarter whether by geography or by industry vertical." The Raleigh, North Carolina based company also announced that its board had approved a new $300 million stock repurchase program. In Wednesday's after hours trading session, RHT shares have jumped nearly 9% to $55.82 in the wake of the company's strong quarter.