How Will Red Hat (RHT) Stock Be Affected By Its Earnings Results?

NEW YORK (TheStreet) -- Red Hat (RHT) reported second quarter net earnings of 41 cents per diluted share that is 3 cents better than analysts were expecting for the quarter.

Revenue increased 19% over the same period last year to $446 million, ahead of analysts expectations of $435 million in revenue.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 

Red Hat shares are down 1.9% to $59.06 in after-hours trading on Thursday despite the positive results.

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 multiple strengths, 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, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

RHT Chart RHT data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Shorts Trampled In Bull Market Rally; UPS Share Structure Examined -- ICYMI

Shorts Trampled In Bull Market Rally; UPS Share Structure Examined -- ICYMI

Jim Cramer: Short Footprints Everywhere

Jim Cramer: Short Footprints Everywhere

Jim Cramer: Odd and Crazy Market Has Lost Its Mind

Jim Cramer: Odd and Crazy Market Has Lost Its Mind

Cramer: 10 Points to Consider

Cramer: 10 Points to Consider

Adobe Stock Could Triple From Where It Is Now

Adobe Stock Could Triple From Where It Is Now