Wells Fargo Maintains an 'Outperform' on Red Hat (RHT); Strong Quarter--FY2012 Guidance Revised Upward Again
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Price: $187.71 --0%
Rating Summary:
16 Buy, 24 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 24 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo maintains an 'Outperform' on Red Hat (NYSE: RHT), price target range raised from $45-50 to $50-$55.
Wells analyst says, "Red Hat reported strong Q2 2011 results. Revenue of $281.3MM (up 28% yr/yr) was above our and the consensus estimate of $271.3MM. Proforma EPS was $0.29, above our estimate and consensus estimate of $0.25 and included a tax benefit of $2.1MM ($0.01 accretive). Strength in results were driven by performance in renewals and improvements in financial services and government verticals. Guidance was revised higher than our above consensus estimate based on execution and momentum in their global sales pipeline. Key takeaways from the call are the execution with up-sell/cross-sell and that the macro environment is not affecting its business. Given the recent results we increase our Q3 2011 revenue estimate to $290MM and leave proforma EPS unchanged at $0.26. We are revising our FY2012E revenue to $1.14B (from $1.09B) and EPS to $1.06 (from $1.01). Our estimates for FY2013 are revised to revenue of $1.33B and EPS of $1.22 (from $1.14) as a result of the increase in FY2012 guidance."
For more ratings news on Red Hat click here and for the rating history of Red Hat click here.
Shares of Red Hat closed at $40.29 yesterday.
Wells analyst says, "Red Hat reported strong Q2 2011 results. Revenue of $281.3MM (up 28% yr/yr) was above our and the consensus estimate of $271.3MM. Proforma EPS was $0.29, above our estimate and consensus estimate of $0.25 and included a tax benefit of $2.1MM ($0.01 accretive). Strength in results were driven by performance in renewals and improvements in financial services and government verticals. Guidance was revised higher than our above consensus estimate based on execution and momentum in their global sales pipeline. Key takeaways from the call are the execution with up-sell/cross-sell and that the macro environment is not affecting its business. Given the recent results we increase our Q3 2011 revenue estimate to $290MM and leave proforma EPS unchanged at $0.26. We are revising our FY2012E revenue to $1.14B (from $1.09B) and EPS to $1.06 (from $1.01). Our estimates for FY2013 are revised to revenue of $1.33B and EPS of $1.22 (from $1.14) as a result of the increase in FY2012 guidance."
For more ratings news on Red Hat click here and for the rating history of Red Hat click here.
Shares of Red Hat closed at $40.29 yesterday.
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