Red Hat Earnings: RHT Stock Edges Higher on Q1 Revenue Beat

Red Hat (NYSE:RHT) reported its quarterly earnings results late in the day Thursday, bringing in a profit that grew year-over-year, while sales topped what analysts called for, playing a role in lifting RHT stock a touch after hours today.

Red Hat EarningsThe Raleigh, North Carolina-based software business unveiled its first-quarter results for its fiscal 2019, which saw it amass net income of $141 million, or 76 cents per share, coming in ahead of its year-ago net income of $113 million, or 59 cents per share, by 24.8%. On an adjusted basis, the company brought in earnings of $1 per share, marking a 39% increase year-over-year.

Red Hat’s adjusted profit for the three-month period was higher than the Wall Street consensus estimate of 87 cents per share, according to data compiled by FactSet. The company’s sales tallied up to $934 million, a 15% increase when compared to the year-ago quarter, while also topping the FactSet outlook by $2.4 million.

The business’ subscription revenue is the company’s main growth driver, and it surged 15% when compared to the year-ago quarter, reaching $815 million. Red Hat’s revenue from application development and emerging technology subscription surged 24% to $235 million.

“We continue to unlock the potential of developers and enterprises, enabling our customers to succeed in building next generation IT infrastructure and applications. Customer interest in Red Hat technologies is robust, evidenced by a record attendance of nearly 9,000 attendees at Red Hat Summit, our marquee user event,” said Red Hat CEO Jim Whitehurst.

RHT stock is up a fraction of a percentage Thursday. Shares had been gaining 0.1% during regular trading hours today in anticipation of the company’s results.

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