The software maker posted earnings of 39 cents a share for the fiscal fourth quarter, beating analysts' estimates of 37 cents a share by 2 cents. Revenue rose 15% from the year-ago quarter to $400 million. Analysts surveyed by Thomson Reuters expected revenue of $399.92 million for the quarter.
"The fourth quarter was a strong finish to fiscal 2014, and it was highlighted by a record number of deals over $1 million and 24% growth in our billings proxy to $565 million," Jim Whitehurst, president and CEO of Red Hat, said in a statement." Continued strong demand for Red Hats technology portfolio drove strong growth in our core platform and application development technologies during the fourth quarter. In addition, our cross-selling efforts resulted in early wins for our emerging technologies, which address top CIO priorities that are driving the evolution of enterprise computing."
Must read: Warren Buffett's 10 Favorite Stocks
TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RED HAT INC (RHT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."