Red Hat Shares Rise As Earnings Come In Ahead Of Estimates

Shares of Red Hat Inc. gained in Thursday's extended session after the open-source software provider posted results that beat analysts' expectations. Red Hat reported fiscal third-quarter earnings edged down to $46.9 million, or 25 cents a share, from $47.9 million, or 26 cents a share, a year earlier. On an adjusted basis, the company known for its Linux OpenStack platform would have earned 48 cents a share. Revenue grew 15% to $523.6 million. Analysts surveyed by FactSet had forecast earnings of 46 cents a share on revenue of $521 million. Red Hat projected earnings per share of 26 cents and 47 cents after adjustments in the fourth quarter while revenue is expected in a range of $535 million to $539 million. The company also raised its fiscal 2016 revenue outlook to $2.044 billion to $2.048 billion, versus $2.034 billion to $2.044 billion previously. Adjusted EPS is projected at $1.86, the mid-point of the $1.85-$1.87 range announced in its prior earnings release. Shares of Red Hat climbed over 3% in after-hours trading.