NEW YORK (TheStreet) -- Shares of Red Hat (RHT) - Get Report were advancing in mid-afternoon trade on Monday ahead of the company's fiscal 2017 second quarter financial report, due out Wednesday following the market close.
Analysts surveyed by Thomson Reuters estimate that Red Hat will report earnings of 54 cents per share on revenue of $593.4 million for the second quarter.
In fiscal 2016, the Raleigh, NC-based software solutions provider posted earnings of 47 cents per share on revenue of $504.15 million for the same period.
UBS said in a recent analyst note that Red Hat shares have been "weak" after the company reported mixed first quarter earnings in June, the Fly noted.
However, the firm added that concerns over the impact of a public cloud on the company's core business have been "overblown," and that Red Hat's top-line metrics remain strong.
The firm maintained a "buy" rating and $85 price target on the shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: RHT