Red Hat Inc. (RHT) Issues FY17 Earnings Guidance
Red Hat Inc. (NYSE:RHT) issued an update on its FY17 earnings guidance on Wednesday morning. The company provided EPS guidance of $2.23-2.25 for the period, compared to the Thomson Reuters consensus EPS estimate of $2.21. The company issued revenue guidance of $2.415-2.535 billion, compared to the consensus revenue estimate of $2.40 billion.Red Hat also updated its Q3 guidance to $0.58 EPS.
Shares of Red Hat Inc. (NYSE:RHT) opened at 80.02 on Friday. The firm’s 50-day moving average is $74.23 and its 200-day moving average is $74.16. Red Hat Inc. has a 52 week low of $59.59 and a 52 week high of $84.44. The firm has a market capitalization of $14.49 billion, a P/E ratio of 70.19 and a beta of 1.32.
Red Hat (NYSE:RHT) last released its earnings results on Wednesday, September 21st. The open-source software company reported $0.55 EPS for the quarter, topping the Zacks’ consensus estimate of $0.54 by $0.01. The company had revenue of $599.80 million for the quarter. Red Hat had a return on equity of 18.27% and a net margin of 9.93%. The company’s revenue for the quarter was up 19.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.47 earnings per share. Equities analysts anticipate that Red Hat Inc. will post $2.21 EPS for the current year.
A number of equities research analysts have recently commented on RHT shares. Vetr upgraded Red Hat from a buy rating to a strong-buy rating and set a $81.54 target price on the stock in a research note on Thursday, September 8th. Jefferies Group reiterated a hold rating and set a $75.00 target price on shares of Red Hat in a research note on Saturday, June 25th. Deutsche Bank AG reiterated a buy rating on shares of Red Hat in a research note on Friday, June 17th. Barclays PLC restated a buy rating and issued a $90.00 price objective on shares of Red Hat in a research note on Thursday, September 15th. Finally, Morgan Stanley cut Red Hat from an overweight rating to an equal weight rating and boosted their price objective for the company from $72.18 to $80.00 in a research note on Thursday, July 7th. They noted that the move was a valuation call. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and twenty-three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average price target of $88.50.
In other Red Hat news, EVP Delisa Alexander sold 2,395 shares of the stock in a transaction on Tuesday, July 19th. The stock was sold at an average price of $72.83, for a total value of $174,427.85. Following the completion of the transaction, the executive vice president now owns 60,780 shares in the company, valued at $4,426,607.40. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Michael Cunningham sold 10,000 shares of the stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $75.00, for a total value of $750,000.00. Following the completion of the transaction, the executive vice president now owns 52,484 shares of the company’s stock, valued at approximately $3,936,300. The disclosure for this sale can be found here. 0.76% of the stock is owned by company insiders.
A number of institutional investors have recently bought and sold shares of RHT. United Services Automobile Association increased its position in Red Hat by 1.3% in the second quarter. United Services Automobile Association now owns 79,607 shares of the open-source software company’s stock worth $5,779,000 after buying an additional 1,000 shares during the period. Cipher Capital LP increased its position in Red Hat by 11.8% in the second quarter. Cipher Capital LP now owns 32,405 shares of the open-source software company’s stock worth $2,353,000 after buying an additional 3,428 shares during the period. OMERS ADMINISTRATION Corp purchased a new position in Red Hat during the second quarter worth about $2,026,000. Gideon Capital Advisors Inc. purchased a new position in Red Hat during the second quarter worth about $587,000. Finally, Comerica Bank increased its position in Red Hat by 12.7% in the second quarter. Comerica Bank now owns 87,231 shares of the open-source software company’s stock worth $6,557,000 after buying an additional 9,833 shares during the period. Institutional investors and hedge funds own 94.81% of the company’s stock.
About Red Hat
Red Hat, Inc (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific.
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