Red Hat (RHT) reported earnings on Tue 22 March 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Red Hat beats by $0.05, beats on revs; issues in-line/upside guidance but billings disappoint :

• Reports Q4 (Feb) earnings of $0.52 per share, $0.05 better than the Capital IQ Consensus of $0.47; revenues rose 17.3% year/year to $544 mln vs the $537.5 mln Capital IQ Consensus.
  • RHT reports Q4 Billings of $764 mln vs Street Expectations of approx $770 mln.
  • Subscription revenue from Infrastructure-related offerings for the quarter was $391 million, an increase of 15% in U.S. dollars year-over-year and 18% measured in constant currency. Subscription revenue from Application Development-related and other emerging technologies offerings for the quarter was $89 million, an increase of 38% in U.S. dollars year-over-year and 43% measured in constant currency.
• Co issues guidance for Q1, sees EPS of $0.50, excluding non-recurring items, vs. $0.50 Capital IQ Consensus Estimate; sees Q1 revs of $558-566 vs. $553.81 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY17, sees EPS of $2.22-2.26, excluding non-recurring items, vs. $2.18 Capital IQ Consensus Estimate; sees FY17 revs of $2.38-2.42 bln vs. $2.36 bln Capital IQ Consensus Estimate.