Red Hat reported earnings of 42 cents a share for the third quarter, beating analysts' estimates of 42 cents a share for the quarter. Revenue grew 15% year over year to $455.89 million for the quarter, above analysts' estimates of $451.39 million.
"Cloud computing and big data trends are driving increased demand for open source technologies," president and CEO Jim Whitehurst said in a statement. "We believe our leadership position in the open source industry and broad portfolio of Open Hybrid Cloud technologies creates a strong position for Red Hat to capture market share in the cloud-enabled data center."
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 some important positives, 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 impressive record of earnings per share growth, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these 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."