Red Hat Rises 11% After Q3 Earnings Beat
Red Hat (NYSE: RHT) is trading up more than 11 percent in after hours trading after the company announced its third quarter results.
The company reported a Q3 EPS of $0.42 versus the Street estimate of $0.35.
Earnings per share were up 45 percent from the year-ago period.
Revenue arrived at $396.5 million versus the Street estimate of $383.1 million. Sales were up 15 percent year-over-year.
"Strong demand in Q3 for our core Red Hat Enterprise Linux and JBoss Middleware technologies led to results that exceeded guidance across several key financial metrics," Jim Whitehurst, President and Chief Executive Officer of Red Hat, said in a company release.
"Red Hat's technologies address the high growth opportunities in the data center to modernize and move away from legacy proprietary software in order to deploy open hybrid cloud technologies that drive IT velocity, efficiency and scalability."
Red Hat beat earnings expectations last quarter as well, reporting a Q2 EPS of $0.35 versus the Street estimate of $0.33.
Despite these successes, shares of Red Hat are still down more than 10 percent year-to-date. The company has stumbled numerous times and quickly fell from its 2013 high of $56.90 (achieved on February 1).
Red Hat came close to year-high territory during the spring when it soared to $54.99 on May 17. Those gains were quickly diminished, however. By June 6, the stock had lost more than 17 percent of its value.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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