UPDATE: Red Hat Posts Upbeat Q3 Revenue, Plans To Buy ManageIQ

Red Hat

posted better-than-expected third-quarter revenue and announced its plans to buy privately held ManageIQ for $104 million in cash. Red Hat projects Q4 earnings of $0.29 to $0.30 per share on revenue of $347 million to $351 million. However, analysts expected earnings of $0.30 per share on revenue of $350.9 million. Its quarterly net income dropped to $34.8 million, or $0.18 per share, versus $38.2 million, or $0.19 per share, in the year-ago period. On an adjusted basis, Red Hat earned $0.29 per share, in line with estimates. Red Hat's revenue climbed 18% to $344 million, beating analysts' expectations of $338 million. Its subscription revenue surged 19% to $294.2 million. Red Hat shares jumped 6.99% to $56.29 in after-hours trading.