Red Hat tops Q2 expectations, ups annual outlook

Wall Street was looking for earnings of 44 cents per share with $494.65 million in revenue.

Red Hat published solid second quarter financial results after the bell on Monday, prompting the software maker to up its outlook.

The open source purveyor reported a net income of $51 million, or 28 cents per share (statement).

Non-GAAP earnings were 47 cents per share on a revenue of $504 million, up 13 percent year-over-year.

Wall Street was looking for earnings of 44 cents per share with $494.65 million in revenue.

CEO and president Jim Whitehurst touted in prepared remarks that Red Hat became the first open source company to achieve a $2 billion annual run rate in revenue this quarter.

Concurring with Whitehurst's additional comments attributing success to multiple cloud deployment strategies, CFO Frank Calderoni highlighted ongoing investments in promoting open hybrid cloud solutions.

For the current quarter, Wall Street is looking for non-GAAP earnings of 46 cents per share with $513.56 million in revenue.

Red Hat responded with a Q3 revenue guidance range of $519 million to $523 million.

The North Carolina-headquartered business also boasted that it boosted its annual revenue outlook to a range of $2.034 billion to $2.044 billion with earnings expected to drop between $1.85 and $1.87 per share.