Red Hat Earnings: 6 Things to Know About Q2

Red Hat (NYSE:RHT) released its earnings results for its second quarter of fiscal 2019 on Wednesday, beating analysts’ expectations on the profit front, while its revenue lagged.

Red Hat EarningsHere are six things to know about the company’s latest quarterly results:

  • The software company said that for its period, it amassed earnings of 85 cents per share on an adjusted basis, topping the 82 cents per share that analysts were calling for, according to data compiled by Thomson Reuters in its consensus estimate.
  • Red Hat revenue for its second quarter totaled $822.7 million, which was below the $830 million that analysts were calling for, according to Thomson Reuters. The company’s revenue for the period was up 14% year-over-year.
  • Subscription revenue came in at $722.7 million, gaining 13% compared to its year-ago quarter. The figure missed the $724.1 million that analysts were projecting.
  • The company’s revenue from training and services came in at $100 million, also missing the $104 million that analysts surveyed by FactSet were calling for.
  • For its third quarter, Red Heat forecasts adjusted earnings of 87 cents per share, below the 92 cents per share that Thomson Reuters calls for in its outlook.
  • Revenue for the third quarter is slated to be between $848 million and $856 million, below the $862.6 million that Wall Street calls for, per Thomson Reuters.

RHT stock gained about 0.3% during regular trading hours in anticipation of the company’s quarterly earnings results, but shares fell late in the day, sliding about 3.3% after hours on Wednesday following its revenue miss.

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