Red Hat (NYSE: RHT) reported earnings on Dec. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q3), Red Hat beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.

Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
Red Hat reported revenue of $343.6 million. The 27 analysts polled by S&P Capital IQ wanted to see net sales of $337.8 million on the same basis. 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.

EPS details
EPS came in at $0.29. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. 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.

Margin details
For the quarter, gross margin was 84.5%, 10 basis points better than the prior-year quarter. Operating margin was 14.5%, 400 basis points worse than the prior-year quarter. Net margin was 10.1%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $350.8 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $1.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 616 members out of 750 rating the stock outperform, and 134 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 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.

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