Red Hat Earnings Mixed, Lacks Guidance

Before you go, we thought you'd like these...
Before you go close icon

Red Hat Inc. (NYSE: RHT) is out with its second quarter results showing that sales were up 15% to $322.6 million after its subscription revenue rose 17% to $279 million. Its non-GAAP operating income was up 4% to $79.2 million and non-GAAP operating margin was 24.6%. Its non-GAAP earnings came to $0.28 per diluted share, which was flat to a year ago if you take the exceptions that the company presented at face value.

In short, the $0.28 EPS and $322.6 million in revenue compared to Thomson Reuters estimates of $0.29 EPS and $322.12 million in revenue. For a high-beta name like Red Hat, investors may want more.

Red Hat said that sales would have risen 20% as a whole and would have risen by 22% on subscriptions in constant currency basis. Second quarter operating cash flow was up 35% to $104 million. Strong demand for Red Hat's open source technologies for creating scale and flexibility in data centers drove the quarter.

At quarter end, the company's total deferred revenue balance was up 16% to $944.4 million and total cash and cash equivalents was $1.36 billion.

Red Hat shares closed down 10-cents on the day at $57.54 against a 52-week range of $37.85 to $62.75 and the stock is down almost 3% at $56.00 in the after-hours session. If you take the $1.19 EPS estimate for its February fiscal year in 2013 and $1.42 EPS in 2014, then the forward P/E ratios at the closing price would be 48.4 and 40.5, respectively.

Guidance was not offered in the press release. Until we have guidance we would consider this to be an incomplete report.

JON C. OGG


Filed under: 24/7 Wall St. Wire, Earnings, Technology, Technology Companies Tagged: RHT
Read Full Story

Markets

S&P 500 2,361.51 2.94 0.12%
DJIA 20,671.53 -29.97 -0.14%
NASDAQ 5,897.30 22.16 0.38%
DAX 12,203.00 53.58 0.44%
NIKKEI 225 19,217.48 14.61 0.08%
HANG SENG 24,392.05 46.18 0.19%
USD (per EUR) 1.08 -0.01 -0.47%
USD (per CHF) 1.00 0.00 0.44%
JPY (per USD) 111.00 -0.22 -0.20%
GBP (per USD) 1.24 0.00 0.17%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

People Have Been Making Chicken Wrong The Whole Time - Here's The Best Way To Do It People Have Been Making Chicken Wrong The Whole Time - Here's The Best Way To Do It
Farmer Came Outside To Check On The Animals - And Found This In Her Pasture Instead Farmer Came Outside To Check On The Animals - And Found This In Her Pasture Instead
Glass-Printed Photos from Fracture Are an Easy Way to Make Your Room All Nice and Pretty Glass-Printed Photos from Fracture Are an Easy Way to Make Your Room All Nice and Pretty