Technology

What to Expect From Red Hat Earnings

Chris Lange

Published: March 21, 2016 11:25 am

Last Updated: January 13, 2020 11:42 am

Red Hat Inc. (NYSE: RHT) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates call for $0.47 in earnings per share (EPS) on $537.20 million in revenue. In the same period of the previous year, the company posted EPS of $0.43 and $463.94 million in revenue.

In the previous quarter, investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing.

During the third quarter, the company strengthened its leadership position in the open hybrid cloud by introducing new technologies and launching a strategic partnership with Microsoft and its Azure Cloud. These initiatives are focused on enabling customers to build, deploy and manage their applications across multiple environments and infrastructures.

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training and consulting services.

A few analysts weighed in on Red Hat recently:

• Deutsche Bank reiterated a Buy rating.
• BMO Capital Markets has an Outperform rating and lowered its price target to $90 from $97.
• Drexel Hamilton reiterated a Buy rating with a $90 price target.

So far in 2016, Red Hat has underperformed the broad markets, with the stock down over 10%. However, over the past 52 weeks the stock is up 7%.

Shares of Red Hat were trading up 0.7% at $74.61 on Monday, with a consensus analyst price target of $88.23 and a 52-week trading range of $59.59 to $84.44.