Red Hat shares jump as Q3 earnings, revenue beat estimates
Just before everyone heads home for the holidays, Red Hat piped out its third quarter earnings report after the bell on Thursday.
The open source giant reported a net income of $52 million, or 27 cents per share (statement). Non-GAAP earnings were 42 cents per share on a revenue of $397 million, up 15 percent annually.
Wall Street was looking for earnings of 35 cents per share on a revenue of $383.11 million.
Almost immediately after the report was published, Red Hat shares jumped by roughly 10 percent in after-hours trading.
With subscription revenues up 17 percent year-over-year to $343 million for the quarter, CEO James Whitehurst highlighted the key products that delivered last quarter:
Strong demand in Q3 for our core Red Hat Enterprise Linux and JBoss Middleware technologies led to results that exceeded guidance across several key financial metrics. Red Hat's technologies address the high growth opportunities in the data center to modernize and move away from legacy proprietary software in order to deploy open hybrid cloud technologies that drive IT velocity, efficiency and scalability.
Chief financial officer Charlie Peters also credited "the strengthening of our European and U.S. federal government businesses" as major revenue contributions over the last three months.
Looking forward, Wall Street is expecting Red Hat to return with a fourth quarter revenue of $394.05 million and non-GAAP earnings around 36 cents per share.