Red Hat (RHT) Q4 Earnings To Gain From Portfolio Strength
Zacks Investment Research | Mar 21, 2018 11:19PM ET
Red Hat Inc. (NYSE:RHT) is set to report fourth-quarter fiscal 2018 results on Mar 26.
We note that, on an average, the company has delivered a positive earnings surprise of 6.73% in the trailing four quarters. In the last quarter, Red Hat delivered positive earnings surprise of 4.29%.
Earnings increased 20.2% on a year-over-year basis primarily driven by strong top-line growth and operating margin expansion.
Revenues increased 21.6% year over year to almost $748 million, primarily on the back of strong demand for hybrid cloud solutions. The figure was better than the Zacks Consensus Estimate of $734 million.
Red Hat's top-line growth is benefiting from improving linearity owing to on-time renewal of deals reflecting strong demand for hybrid cloud technology solutions as well as aggressive cross-selling.
Buoyed by solid results, Red Hat stock has returned 28.7% year to date, substantially outperforming the 7.8% rally in the Zacks Investment Research
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