Red Hat Sees Net Below Views; Shares Fall
RALEIGH, N.C. (
) --
Red Hat
(RHT) - Get Report
shares fell in after-hours trading as the software maker's fiscal fourth-quarter earnings came in better than expected but its outlook disappointed investors.
Red Hat, a maker of Linux operating systems software, earned $23.4 million, or 12 cents a share, in the quarter, an increase from year-earlier earnings of $16.2 million, or 8 cents a share.
Red Hat posted earnings of 19 cents a share excluding items. Analysts surveyed by Thomson Reuters expected earnings of 16 cents a share.
Revenue in the quarter rose 18% to $195.9 million, while subscription revenue increased 21% to $169.2 million.
Analysts forecast fourth-quarter revenue of $193.2 million.
The company also said it will report adjusted profit of 71 cents to 74 cents a share in the fiscal year ending next February. Analysts were expecting 76 cents a share.
Red Hat also said it expects fiscal-year revenue of $835 million to $850 million. Analysts forecast revenue of $842 million.
The company also said it sees first-quarter earnings, excluding items, of 17 cents to 18 cents a share.
Red Hat shares fell 3.4% to $29.68 in after-hours trading Wednesday. It closed the regular session at $30.70.
-- Reported by Joseph Woelfel in New York.
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