Red Hat (NYSE: RHT ) reported earnings on June 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q1), Red Hat beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Gross margins expanded, operating margins grew, net margins contracted.
Red Hat logged revenue of $314.7 million. The 24 analysts polled by S&P Capital IQ expected a top line of $310.7 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $264.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 85.4%, 140 basis points better than the prior-year quarter. Operating margin was 17.2%, 10 basis points better than the prior-year quarter. Net margin was 11.9%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $322.0 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $1.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 617 members out of 754 rating the stock outperform, and 137 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Red Hat a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Red Hat is outperform, with an average price target of $60.00.
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