Red Hat Inc (RHT) Updates Q3 Earnings Guidance

At the end of last quarter, William Blair analyst Bhavan Suri reiterated his Outperform rating on the stock arguing, “Red Hat’s revenue came in $8 million above the Street, despite foreign exchange headwinds of $36 million, although the company experienced a $5 million tailwind as a result of an earned revenue adjustment from its cloud providers”. As the hours tick down to reveal the newest numbers, recent insider transactions and the latest analyst opinions are leaving investors conflicted about what to do with this technology stock. Gagnon Securities Llc is another bullish investment professional who is having 200,111 shares of Red Hat or 6.01% of their stocks portfolio. The company has a market cap of $13.04B and a P/E ratio of 71.67.

Sales for the fourth quarter rose 2% to $1.06 billion from $1.04 billion in the fourth quarter of past year .

Red Hat expects full-year earnings in the range of $1.85 to $1.87 per share, with revenue ranging from $2.03 billion to $2.04 billion. “Given the strong deal activity and momentum to start the year, we believe the company has set itself up nicely to beat its full-year revenue and operating cash flow guidance”. Red Hat ended FQ2 with $2B in cash/investments, and $725M in convertible debt.

-EPS (Q2): $0.47 vs. $0.41 previous year .

For the current quarter, Wall Street is looking for non-GAAP earnings of 46 cents per share with $513.56 million in revenue. Mizuho reissued a buy rating on shares of Red Hat in a research report on Monday. The Company distributes its software offerings under open source licenses that allow access to the application ‘s human-readable source code. William Blair reiterated a buy rating on shares of Red Hat in a research note on Sunday, June 21st. upped their price objective on shares of Red Hat from $79.00 to $85.00 and gave the company a buy rating in a research note on Monday, June 22nd. Revenue rose more than 21 percent after accounting for currency fluctuations.

Red Hat Inc, the world’s largest commercial distributor of the Linux operating system, reported a 13 percent rise in quarterly revenue, helped by higher demand for open-source software and cloud offerings. The company now has an average rating of Buy and a consensus target price of $82.07. The Business applies an open source development model.

Based in Raleigh, NC, Red Hat provides open source software solutions to enterprise customers worldwide.