RealMoney Silver - Red Hat Runs Higher

Red Hat Runs Higher
By Ivy Lessner
TheStreet.com Staff Reporter
6/27/2007 2:47 PM EDT

Investors are showing high expectations for Wednesday's post-close earnings report by Red Hat (RHT) .

Stock in the Raleigh, N.C.-based maker of commercial-grade Linux software was recently trading up $1.09, or 4.7%, at $24.45.

Analysts expect revenue of $117.1 million and earnings per share, excluding items, of 15 cents for the quarter just ended, according to Thomson First Call. Revenue for the same quarter of prior year was $84 million, and EPS was 14 cents.

The company scored a new buy rating from at least one analyst firm initiating coverage in May.

But SunTrust Robinson Humphrey analyst Terry Tillman remains more cautious, reiterating his neutral rating Tuesday, noting that though sentiment on the company is growing more bullish, "it is difficult for us to get overly excited on the stock in the quarter."