Red Hat at 12-year High, Guides Higher (RHT)

Red Hat easily topped analysts’ consensus estimates on EPS and revenues, as we noted last night following the company’s earnings report. The company announced a $300 million share buyback program commencing April 1st to replace a similar program expiring on March 31st. About $214 million in stock repurchases have been made under the existing program.

In its conference call, Red Hat offered revenue guidance of $1.34-$1.36 billion for its 2013 fiscal year, up 20% from 2012 revenues. The company also expects non-GAAP operating margins of 24.7%-24.9% and full-year non-GAAP EPS of $1.16-$1.20. The company also expects to hire 1,000 new employees this year. The consensus analyst’s estimate called for EPS of $1.15 on revenue of $1.3 billion.

Shares are up more than 15% at $59.25 in a new 52-week range of $31.77-$60.20. Volume is about 6x the 3-month daily average of 1.46 million shares.

Paul Ausick