Zacks: Brokerages Expect Red Hat Inc (RHT) Will Post Quarterly Sales of $853.58 Million

Brokerages forecast that Red Hat Inc (NYSE:RHT) will post $853.58 million in sales for the current fiscal quarter, according to Zacks Investment Research. Twelve analysts have provided estimates for Red Hat’s earnings, with the lowest sales estimate coming in at $851.03 million and the highest estimate coming in at $860.30 million. Red Hat reported sales of $747.98 million during the same quarter last year, which indicates a positive year over year growth rate of 14.1%. The firm is scheduled to report its next earnings results after the market closes on Monday, December 17th.

On average, analysts expect that Red Hat will report full-year sales of $3.38 billion for the current year, with estimates ranging from $3.37 billion to $3.39 billion. For the next financial year, analysts expect that the firm will post sales of $3.86 billion, with estimates ranging from $3.79 billion to $3.92 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of research analysts that follow Red Hat.

Red Hat (NYSE:RHT) last announced its quarterly earnings data on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.82 by $0.03. The firm had revenue of $822.75 million during the quarter, compared to analyst estimates of $828.12 million. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The business’s quarterly revenue was up 13.7% on a year-over-year basis. During the same period in the previous year, the business posted $0.77 EPS.

A number of equities research analysts have recently weighed in on RHT shares. Royal Bank of Canada boosted their price objective on shares of Red Hat to $190.00 in a report on Monday, October 29th. Nomura lowered their price objective on shares of Red Hat from $182.00 to $175.00 and set a “buy” rating for the company in a report on Thursday, September 20th. Stifel Nicolaus lowered their price objective on shares of Red Hat from $172.00 to $160.00 and set a “buy” rating for the company in a report on Thursday, September 20th. Citigroup lowered their price objective on shares of Red Hat from $167.00 to $163.00 and set a “buy” rating for the company in a report on Thursday, September 20th. Finally, Needham & Company LLC started coverage on shares of Red Hat in a report on Monday, October 22nd. They issued a “buy” rating and a $183.00 price objective for the company. One research analyst has rated the stock with a sell rating, sixteen have issued a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $163.48.

In related news, CEO James M. Whitehurst sold 2,513 shares of the company’s stock in a transaction on Wednesday, October 17th. The shares were sold at an average price of $125.03, for a total transaction of $314,200.39. Following the completion of the sale, the chief executive officer now directly owns 361,627 shares in the company, valued at approximately $45,214,223.81. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Delisa Alexander sold 960 shares of the company’s stock in a transaction on Wednesday, October 17th. The shares were sold at an average price of $125.03, for a total transaction of $120,028.80. Following the sale, the executive vice president now owns 33,217 shares of the company’s stock, valued at $4,153,121.51. The disclosure for this sale can be found here. Insiders have sold a total of 3,631 shares of company stock valued at $453,984 over the last quarter. 0.58% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of the stock. Marshall Wace LLP raised its holdings in Red Hat by 396.1% in the 3rd quarter. Marshall Wace LLP now owns 234,990 shares of the open-source software company’s stock worth $32,024,000 after purchasing an additional 187,621 shares in the last quarter. Vanguard Group Inc. raised its holdings in Red Hat by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 18,703,926 shares of the open-source software company’s stock worth $2,548,970,000 after purchasing an additional 103,057 shares in the last quarter. Legal & General Group Plc raised its holdings in Red Hat by 1.6% in the 3rd quarter. Legal & General Group Plc now owns 804,809 shares of the open-source software company’s stock worth $109,673,000 after purchasing an additional 12,629 shares in the last quarter. Standard Life Aberdeen plc raised its holdings in Red Hat by 15.2% in the 3rd quarter. Standard Life Aberdeen plc now owns 47,528 shares of the open-source software company’s stock worth $6,477,000 after purchasing an additional 6,274 shares in the last quarter. Finally, Nordea Investment Management AB raised its holdings in Red Hat by 558.8% in the 3rd quarter. Nordea Investment Management AB now owns 61,732 shares of the open-source software company’s stock worth $8,413,000 after purchasing an additional 52,362 shares in the last quarter. Institutional investors own 96.99% of the company’s stock.

Shares of RHT opened at $177.10 on Friday. The company has a market capitalization of $31.30 billion, a PE ratio of 77.00, a price-to-earnings-growth ratio of 4.62 and a beta of 0.70. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.23 and a quick ratio of 1.23. Red Hat has a fifty-two week low of $115.31 and a fifty-two week high of $179.49.

Red Hat Company Profile

Red Hat, Inc provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, mobile, and storage technologies to various enterprises worldwide. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications.

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