Red Hat Profit, Revenue Beats 1Q Targets

   By Michael Tobin

Red Hat Inc. (RHT) said its first-quarter profit rose from a year earlier as it looks ahead to International Business Machines Corp. (IBM) completing a takeover of the company.

The open-source software company said Thursday its profit was $141.1 million, or 76 cents a share, in the quarter ended May 31, compared with $113.2 million, or 59 cents a share, a year earlier. Excluding costs like stock-based compensation and those connected with business combinations, Red Hat's profit was $1 a share.

Red Hat recorded $934.1 million in first-quarter revenue, compared with $813.5 million in revenue the same time last year.

Analysts polled by FactSet estimated adjusted earnings of 87 cents a share on $931.6 million in revenue.

The company saw a boost in subscription revenue, increasing to $814 million compared with $712 million at this time last year.

The company said it wouldn't provide guidance for the rest of the current fiscal year because of its planned merger with IBM.

IBM said in October that it would acquire Red Hat in a $34 billion deal. U.S. regulators have approved the transaction, and Reuters has reported that EU regulators plan to come to a decision by June 27.

Write to Michael Tobin at michael.tobin@wsj.com

(END) Dow Jones Newswires

June 20, 2019 17:00 ET (21:00 GMT)

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