Zacks: Analysts Expect Red Hat Inc (RHT) Will Post Quarterly Sales of $734.38 Million

Wall Street brokerages expect Red Hat Inc (NYSE:RHT) to post sales of $734.38 million for the current quarter, according to Zacks Investment Research. Ten analysts have issued estimates for Red Hat’s earnings, with the lowest sales estimate coming in at $733.30 million and the highest estimate coming in at $735.95 million. Red Hat reported sales of $615.26 million during the same quarter last year, which indicates a positive year-over-year growth rate of 19.4%. The company is scheduled to report its next quarterly earnings report on Wednesday, December 20th.

On average, analysts expect that Red Hat will report full-year sales of $734.38 million for the current financial year, with estimates ranging from $2.89 billion to $2.91 billion. For the next fiscal year, analysts forecast that the company will post sales of $3.31 billion per share, with estimates ranging from $3.20 billion to $3.39 billion. Zacks’ sales calculations are a mean average based on a survey of sell-side research firms that cover Red Hat.

Red Hat (NYSE:RHT) last announced its quarterly earnings results on Monday, September 25th. The open-source software company reported $0.77 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.67 by $0.10. Red Hat had a return on equity of 25.27% and a net margin of 11.49%. The company had revenue of $723.60 million during the quarter, compared to analyst estimates of $699.56 million. During the same quarter in the previous year, the firm posted $0.55 EPS. The firm’s quarterly revenue was up 20.6% on a year-over-year basis.

A number of research analysts have issued reports on RHT shares. Zacks Investment Research upgraded Red Hat from a “hold” rating to a “buy” rating and set a $120.00 price target for the company in a research report on Thursday, September 21st. Stifel Nicolaus restated a “buy” rating and issued a $115.00 price objective on shares of Red Hat in a report on Wednesday, September 20th. Drexel Hamilton restated a “buy” rating and issued a $127.00 price objective on shares of Red Hat in a report on Tuesday, September 19th. Moffett Nathanson assumed coverage on Red Hat in a report on Wednesday, September 6th. They issued a “buy” rating for the company. Finally, Mizuho restated a “buy” rating and issued a $125.00 price objective (up previously from $109.00) on shares of Red Hat in a report on Tuesday, September 26th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and twenty-four have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $110.93.

Shares of Red Hat (NYSE:RHT) traded up $2.27 during mid-day trading on Thursday, reaching $126.76. The company’s stock had a trading volume of 1,842,180 shares, compared to its average volume of 1,652,373. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.54. Red Hat has a one year low of $68.54 and a one year high of $129.61. The firm has a market cap of $23,041.94, a price-to-earnings ratio of 71.01, a PEG ratio of 4.11 and a beta of 1.18.

In related news, Director William S. Kaiser sold 14,000 shares of the company’s stock in a transaction on Thursday, October 5th. The stock was sold at an average price of $114.79, for a total transaction of $1,607,060.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO James M. Whitehurst sold 12,000 shares of the company’s stock in a transaction on Monday, October 2nd. The shares were sold at an average price of $111.15, for a total value of $1,333,800.00. Following the transaction, the chief executive officer now directly owns 392,979 shares in the company, valued at $43,679,615.85. The disclosure for this sale can be found here. Insiders have sold 34,172 shares of company stock worth $3,926,377 over the last ninety days. 0.66% of the stock is owned by insiders.

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Red Hat by 2.8% during the second quarter. Vanguard Group Inc. now owns 17,627,522 shares of the open-source software company’s stock valued at $1,687,836,000 after buying an additional 479,615 shares during the period. FMR LLC raised its position in Red Hat by 10.8% during the second quarter. FMR LLC now owns 11,165,642 shares of the open-source software company’s stock valued at $1,069,110,000 after buying an additional 1,085,953 shares during the period. Northern Trust Corp raised its position in Red Hat by 28.8% during the second quarter. Northern Trust Corp now owns 3,794,946 shares of the open-source software company’s stock valued at $363,365,000 after buying an additional 848,777 shares during the period. TIAA CREF Investment Management LLC raised its position in Red Hat by 34.4% during the second quarter. TIAA CREF Investment Management LLC now owns 1,302,954 shares of the open-source software company’s stock valued at $124,758,000 after buying an additional 333,408 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in Red Hat by 282.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,177,208 shares of the open-source software company’s stock valued at $112,718,000 after buying an additional 869,550 shares during the period. 93.90% of the stock is currently owned by hedge funds and other institutional investors.

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Red Hat Company Profile

Red Hat, Inc (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific.

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Earnings History and Estimates for Red Hat (NYSE:RHT)

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