Red Hat Inc the maker of Linux software posted an increase in its profit on Tuesday for its fourth quarter as its revenues expanded by 17%. Both revenues and earnings for the three month period topped estimates by Wall Street.
Red Hat, based in Raleigh, North Carolina said its profit for the fourth quarter rose to just over $53 million equal to 29 cents per share in comparison $47.7 million equal to 26 cents per share during the same period one year ago.
The adjusted earnings during the quarter were up ending the quarter at $97 million equal to 52 cents per share compared to $80.5 million equal to 43 cents per share for the last period one year ago.
Analysts were expecting earnings to reach 47 cents per share during the three-month period. Analysts’ estimates usually exclude all special items.
Revenue during the just ended quarter was up 17% to end the quarter at $543.3 million compared to $463.8 million for the same quarter last year. Revenues using a constant currency basis grew 21%. Analysts had a revenue estimate on a constant basis during the quarter was $534.5 million.
Subscription revenue, which accounts for close to 87% of all revenues increased 18% to more than $480 million.
Looking ahead for its first quarter, the company expects its adjusted earnings to reach 50 cents per share while its revenues are expected to be between $558 million and $566 million.
Analysts have estimated that earnings would be 50 cents per share with revenues reaching $554.5 million.
For its full year, Red Hat is expecting its adjusted earnings to be between $2.22 and $2.26 a share with overall revenue reaching between $2.38 billion and $2.42 billion.
Analysts are predicting full earnings to be $1.86 a share with revenues reaching as high as $2.05 billion.
Shares of Red Hat closed trading on Tuesday up 81 cents equal to an increase of 1.08% on NYSE. However, the stock gained another 87 cents or more than 1.15% in trading after hours.