Linux software maker Red Hat Inc., (RHT), Tuesday reported an increase in profit for the fourth quarter as revenues grew 17 percent. Both earnings and revenues for the quarter topped Wall Street estimates.
Raleigh, North Carolina-based Red Hat's fourth-quarter profit rose to $53.0 million or $0.29 per share from $47.7 million or $0.26 per share last year.
Adjusted earnings for the quarter rose to $97.0 million or $0.52 per share from $80.6 million or $0.43 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 17 percent to $543.5 million from $463.9 million last year. On a constant currency basis, revenues grew 21 percent. Analysts had a consensus revenue estimate of $534.6 million for the quarter.
Subscription revenue, which represents about 87 percent of total revenues, increased 18 percent to $480 million.
Looking forward to the first quarter, Red Hat expects adjusted earnings to be about $0.50 per share and revenues of $558 million to $566 million. Analysts currently estimate earnings of $0.50 per share on revenues of $554.58 million.
For the full year, Red Hat expects adjusted earnings of $2.22 to $2.26 per share on revenues of $2.38 to $2.42 billion. Earlier, Red Hat predicted adjusted earnings of about $1.86 per share and revenues of $2.044 billion to $2.048 billion. Analysts currently project earnings of $1.86 per share on revenues of $2.05 billion.
RHT closed Tuesday's trading at $75.71, up $0.81 or 1.08%, on the NYSE. The stock, however, gained $0.87 or 1.15% in the after-hours trade.
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