Red Hat, Inc. (NYSE: RHT) on Monday reported second quarter revenue and earnings that beat analysts’ estimates. The company also raised its forecast for the full year, sending the stock up over 2 percent.
The provider of open source solution said total revenue rose 21 percent to $723 million in the second quarter, beating analysts’ estimates by $23.55 million. Excluding certain items, the company earned 77 cents per share. Analysts polled by Thomson Reuters had estimates of 67 cents per share.
“Strong demand for our technologies that enable hybrid cloud computing has contributed to accelerated revenue growth in the first half of the fiscal year. In the second quarter, we delivered total revenue growth of 21%, fueled by over 40% growth in our Application Development-related and other emerging technology revenue," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "IT organizations continued to turn to Red Hat as a strategic technology partner to help them transform and modernize their applications and infrastructure for the hybrid cloud."
Red hat shares rose 2.12 percent to $108 in the early trading in New York.
Analyst Abhey Lamba from Mizuho Securities raises its price target for Red Hat to $125 from $109 after the strong second quarter earnings.
"Strong execution and global demand for Red Hat technologies continued to drive financial results which exceeded expectations for the second quarter and the first half of fiscal year 2018," stated Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat.