Red Hat (NYSE: RHT ) is expected to report Q4 earnings on March 27. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Red Hat's revenues will expand 17.7% and EPS will increase 3.4%.
The average estimate for revenue is $349.5 million. On the bottom line, the average EPS estimate is $0.30.
Last quarter, Red Hat logged revenue of $343.6 million. GAAP reported sales were 18% higher than the prior-year quarter's $290.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.29. GAAP EPS of $0.18 for Q3 were 5.3% lower than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 84.5%, 10 basis points better than the prior-year quarter. Operating margin was 14.6%, 400 basis points worse than the prior-year quarter. Net margin was 10.1%, 310 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 624 members out of 763 rating the stock outperform, and 139 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Red Hat a green thumbs-up, and 28 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 $60.90.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Red Hat makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Red Hat to My Watchlist.