Red Hat (RHT) Posts Strong Q4 Results as Investments Pay Off
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Price: $48.49 -1.76%
EPS Growth %: +24.1%
Financial Fact:
Cost of subscriptions: 21.15M
Today's EPS Names:
ANF, DXLG, FL, More
EPS Growth %: +24.1%
Financial Fact:
Cost of subscriptions: 21.15M
Today's EPS Names:
ANF, DXLG, FL, More
Trade RHT Now!
Investors are buying Red Hat (NYSE: RHT) shares in Wednesday's post-market session following fourth-quarter results which beat analyst's estimates on both sales and earnings.
Quarterly revenue of $297.01 million was up 21 percent from sales of $244.8 million reported during the same quarter in 2011. Analysts were expecting sales of $291.22 million. Sales to Red Hat's Subscriptions unit made up nearly 86 percent of total sales, coming in at $255.17 million.
Net income rose 7 percent from $33.63 million in the year-ago quarter to $36.97 million, or 18 cents per common share. Non-GAAP net income totaled $57.25 million, or about 29 cents per share. The Street was expecting EPS of 27 cents.
"The strength of our fourth quarter was a fitting conclusion to a remarkably strong year for our business. Our investments to expand our geographic sales footprint and add sales people with targeted industry and product knowledge has accelerated our growth," said Jim Whitehurst, President and CEO. "Red Hat is the first pure-play, open source company, and one of only a select few software companies, to have achieved the billion dollar revenue milestone. The open source technologies which we provide are being selected by more customers every day as they re-architect the infrastructure of their data centers for greater efficiency, agility and cloud enablement."
Operating margin on an adjusted basis was 26 percent for the quarter.
Fourth-quarter operating cash flow was $128 million.
The company's Board also authorized a fresh $300 million buyback program.
UPDATE: on its conference call, Red Hat said it is looking for first-quarter earnings of 25-27 cents per share on sales of $307-$311 million. FY13 adj-EPS are expected to be in the range of $1.16-$1.10 on sales of $1.34-$1.36 billion.
Shares of Red Hat last traded at $55.42, up nearly 8 percent from Tuesday's closing price.
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Quarterly revenue of $297.01 million was up 21 percent from sales of $244.8 million reported during the same quarter in 2011. Analysts were expecting sales of $291.22 million. Sales to Red Hat's Subscriptions unit made up nearly 86 percent of total sales, coming in at $255.17 million.
Net income rose 7 percent from $33.63 million in the year-ago quarter to $36.97 million, or 18 cents per common share. Non-GAAP net income totaled $57.25 million, or about 29 cents per share. The Street was expecting EPS of 27 cents.
"The strength of our fourth quarter was a fitting conclusion to a remarkably strong year for our business. Our investments to expand our geographic sales footprint and add sales people with targeted industry and product knowledge has accelerated our growth," said Jim Whitehurst, President and CEO. "Red Hat is the first pure-play, open source company, and one of only a select few software companies, to have achieved the billion dollar revenue milestone. The open source technologies which we provide are being selected by more customers every day as they re-architect the infrastructure of their data centers for greater efficiency, agility and cloud enablement."
Operating margin on an adjusted basis was 26 percent for the quarter.
Fourth-quarter operating cash flow was $128 million.
The company's Board also authorized a fresh $300 million buyback program.
UPDATE: on its conference call, Red Hat said it is looking for first-quarter earnings of 25-27 cents per share on sales of $307-$311 million. FY13 adj-EPS are expected to be in the range of $1.16-$1.10 on sales of $1.34-$1.36 billion.
Shares of Red Hat last traded at $55.42, up nearly 8 percent from Tuesday's closing price.
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