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.

Revenue details
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.

EPS details
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.

Recent performance
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.

Looking ahead

The full year's average estimate for revenue is $1.34 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 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.

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