Red Hat Sails Above Estimates (RHT)

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Red Hat, Inc. (NYSE: RHT) has just announced a 21% gain in sales to $297 million for its fourth quarter and its non-GAAP earnings came to a gain of 12% to $0.29 in earnings per share.  Thomson Reuters had targets of $291.2 million and $0.27 EPS, so it beat estimates on both counts.

Fourth quarter operating cash flow was up 35% to $128 million; Subscription revenue for the quarter was up 22% to $255.2 million.  The company ended with more than $814 million in cash, cash equivalents, and short term investments.

Be advised that guidance was not offered up in the press release, so consider this as being unfinished business or incomplete data until guidance is offered up.  The stock trades at well over 40-times expected Feb-2013 earnings estimates.

Shares closed down 1% at $51.32 but the after-hours reaction has shares trading up 5% at $53.93 after the news.

JON C. OGG

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