Red Hat Raises Guidance
September 21 2015 - 5:20PM
Dow Jones News
Red Hat Inc. raised its guidance for the fiscal year as the
open-source software provider reported that earnings rose 9.8% in
the latest quarter.
For the year ending in February, the Raleigh, N.C.-based company
now expects per-share earnings of $1.85 to $1.87 on revenue of
$2.034 billion to $2.044 billion, compared with its previous
estimate for per-share profit of $1.81 to $1.84 and revenue of
$1.99 billion to $2.02 billion.
For the current quarter, the company forecast revenue of $519
million to $523 million, while analysts polled by Thomson revenue
of $514 million.
The company, which has reported robust revenue increases lately,
is known for its enterprise Linux OpenStack platform. But it has
also posted solid growth for its so-called middleware offerings and
has expanded its storage technology business.
For the period ended Aug. 31, Red Hat reported a profit of $51.4
million, or 28 cents a share, up from $46.8 million, or 25 cents a
share, a year earlier. Excluding stock-based compensation and other
items, per-share earnings rose to 47 cents from 41 cents. Analysts
expected per-share profit of 44 cents.
Revenue increased 13% to $504.1 million. Excluding currency
impacts, revenue improved 21%. The company expected revenue of
roughly $492 million to $496 million.
Subscription revenue grew 13% to $441.5 million.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 21, 2015 17:05 ET (21:05 GMT)
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