Red Hat: Shares Rally after Earnings Beat | Financial Buzz

Red Hat: Shares Rally after Earnings Beat

Shares of American multinational software company providing open-source software products to the enterprise community, Red Hat (NYSE: RHT) rallied on Wednesday during after-hours after the company released positive quarter 2 results and guidance which topped consensus by Wall Street. The company announced quarterly earnings per share of $0.55 on revenues of $600 million slightly beating estimates $0.54 a share on revenue of $590 million.

“Digital transformation and hybrid cloud computing are changing how applications are built, deployed, and managed. As organizations adopt agile application development technologies such as Linux containers, they are able to rely on Red Hat as their strategic partner to modernize their infrastructure and application development platforms,” said President and CEO of Red Hat Jim Whitehurst.

For the next quarter, the company is expecting EPS of $0.58 on revenue between $613 million to $623 million. Analysts estimate $0.57 a share on revenue of $611.5 million. 

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