The biggest supplier of Linux operating system in the world has just reported its broadcast for the quarterly revenue of the company. Red Hat Inc. provided revenue broadcast which is below the estimates of market analysts. In extended trading, the company’s shares dipped 3%.
The 17% billings growth of Red Hat for the quarter which ended in August 31 did not make the investors happy according to the Susquehanna Financing Group analyst Derrick Wood. He said that given the recent performance of the company’s stocks in the past few months, the investors were expecting a stronger upside the consensus billings.
Red Hat has Amazon.com Inc. and Alcatel-Lucent SA as one of its major customers which contributed to the company’s total revenue of $445 million from the year before it which only $373 million. The net income of Red Hat went up to $46.8 million or $0.25 per share compared to the $40.8 million or $0.21 per share in 2013.
The forecasted third quarter revenue of Red Hat is around $449 million to $454 million which is lower than that of analysts’ estimates of $455.5 million.
The company didn’t provide guidance although consensus forecasts call for third quarter EPS of $457.11 million or $0.41 per share. The estimated full fiscal year EPS revenue of 2015 is $1.78 million or $1.54 per share.
On a statement provided by Red Hat last Thursday, it said that the company is planning to purchase FeedHenry, a mobile application service provider for around $81.98 million or 63.5 million euros in order to widen its app development services portfolio.
The Red Hat stock shares closed down today at 0.7% and slipped close to 2% in the extended trading at $59.60. The 52-week range of the stock is $41.89 to $62.69. The Thomson Reuters consensus price target was around $66.90 prior to the report today.