Red Hat, Inc: Shares Jump 5% on 1st-Quarter Revenue Surprise

Source: Red Hat.

Red Hat (NYSE: RHT  ) just reported results for the first quarter of fiscal year 2015. Following the report, shares of the open-source software veteran rose as much as 5.5% in after-hours trading.

Analysts were looking for adjusted earnings of $0.33 per share on $414 million in total sales. Red Hat reported non-GAAP earnings of $0.34 per share and $424 million in total revenue, exceeding the Street's targets across the board. Sales increased 17% year-over-year while earnings per share grew 6%.

As the company signs more and more long-term contracts in lieu of one-time license fees, Red Hat's deferred revenue balance increased 20% year over year to $1.3 billion.

Red Hat spent $80 million on share buybacks in the first quarter, retiring 1.6 million shares from the open market. That's a 0.9% reduction of Red Hat's outstanding share count.

In other news today, Red Hat announced the acquisition of privately held eNovance this morning for an undisclosed sum. The Paris-based OpenStack implementation and support specialist is expected to reinforce Red Hat's OpenStack service portfolio.

Red Hat CEO Jim Whitehurst. Source: Red Hat.

In a phone conversation with The Motley Fool, CEO Jim Whitehurst mused on the strongest year-over-year growth Red Hat has seen since the second quarter of 2012.

"I think we're really starting to get traction with some of our cloud offerings," Whitehurst said. "Just solidly, we're starting to see some reacceleration. For me, obviously, that's a good thing to see because a lot of analysts kind of question-marked whether Red Hat's growth would be accelerating. And we showed reacceleration not only in revenues but also in billings. That bodes well for future growth accelerating as well."

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2999777, ~/Articles/ArticleHandler.aspx, 9/2/2015 12:52:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:00 PM
RHT $70.04 Down -2.17 -3.01%
Red Hat, Inc. CAPS Rating: ***