Red Hat stock drops on revenue miss, weak outlook
Red Hat Inc. RHT, +0.32% shares dropped in the extended session Wednesday after the software company’s quarterly revenue and outlook fell short of Wall Street estimates. Red Hat shares fell 4% after hours, following a 0.3% rise to close the regular session at $143.16. The company reported fiscal second-quarter net income of $86.9 million, or 46 cents a share, compared with $97.1 million, or 53 cents a share, in the year-ago period. Adjusted earnings were 85 cents a share. Revenue rose to $822.7 million from $723.4 million in the year-ago period. Analysts surveyed by FactSet had estimated 82 cents a share on revenue of $828.1 million. For the fiscal third quarter, Red Hat estimates adjusted earnings of about 87 cents a share on revenue of about $848 million to $856 million. Analysts expect earnings of 92 cents a share on revenue of $862.2 million.
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