Categories AlphaGraphs, Earnings, Technology
Earnings preview: What to expect from Red Hat’s Q1 report
Open-source software company Red Hat, Inc. (NYSE: RHT), which is on the way to becoming a part of International Business Machines (IBM), will be publishing first-quarter results Thursday after the market’s close.
Taking a cue from the stable market for cloud computing solutions, analysts have predicted a 19% year-over-year increase in first-quarter earnings to $0.86 per share. Driving the profit growth, revenues are seen gaining about 15% to $931.6 million.
Going by the past performance, wherein the company beat expectations in all of its reporting periods in the last fiscal year, the chances of first-quarter results surpassing the forecast are very high. Red Hat’s continuing dominance in the Linux server market is expected to spur further subscription growth.
The North Carolina-based tech firm continues to witness widespread adoption of its products by businesses for deploying applications on hybrid and multi-cloud environments, which will be reflected in the first-quarter results.
The company continues to witness widespread adoption of its products by businesses for deploying applications
The management is expected to provide updates on the proposed merger between Red Hat and IBM, which is on track for closure in the second half of the year after securing most of the approvals. Earlier, it was delayed for want of regulatory clearance, including antitrust approval. Currently, the build-up of investor sentiment is centered on the pending merger.
Also see: IBM Q1 2019 Earnings conference call
Supported by a double-digit increase in subscriptions, revenues jumped 14% to $879 million in the fourth quarter, lifting adjusted earnings up by 26% to $1.16 per share. The bottom-line also benefitted from lower income tax provision, and topped the Street view. The hybrid cloud technology solutions witnessed solid demand during the quarter.
Microsoft (MSFT), which competes with Red Hat in multiple areas, reported above-consensus revenues and earnings for the third quarter, with solid contributions from all the three business segments. Earlier this month, Salesforce (CRM) reported a 26% growth in first-quarter earnings to $0.93 per share even as revenues increased by a fourth to $3.7 billion.
Red Hat’s stock climbed to a record high this week, crossing the $185-mark. It has been hitting new highs consistently since the beginning of the year, gaining 7% during that period. Over the past twelve months, the stock moved up 31%.
Most Popular
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q2 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported its second quarter 2024 earnings results today. Net sales increased 4.9% year-over-year to $5 billion. Organic sales increased 9%. Net income attributable to Colgate-Palmolive Company was $731
Key takeaways from Visa’s Q3 2024 earnings report
Credit card behemoth Visa, Inc. (NYSE: V) this week reported mixed results for the June quarter, with earnings matching expectations and sales slightly missing the view. Both numbers grew in
Southwest Airlines (LUV): A look at the airline’s performance in Q2 2024
Shares of Southwest Airlines Co. (NYSE: LUV) were up over 6% on Thursday after the company beat earnings estimates for the second quarter of 2024. The stock has gained 4%