Red Hat Slumps After Announcing Quarterly Earnings, Deal To Buy 3scale
Shares of Red Hat Inc. fell in Wednesday's extended session after the open-source software provider posted in-line quarterly earnings and said it will buy API management company 3scale for an undisclosed amount. Red Hat reported fiscal first-quarter earnings rose to $61.2 million, or 33 cents a share, from $48 million, or 26 cents a share, a year earlier. On an adjusted basis, the company known for its Linux OpenStack platform would have earned 50 cents a share. Revenue grew 18% to $567.9 million. Analysts surveyed by FactSet had forecast earnings of 50 cents a share on revenue of $563 million. Red Hat projected second-quarter adjusted earnings per share of 54 cents, which is slightly below analysts' outlook of 55 cents a share. The company also announced it will buy back up to $1 billion in shares. Red Hat's stock fell nearly 5% after hours.
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