Red Hat Inc. Is on a Roll
This week, Red Hat (NYSE: RHT) delivered another batch of solid proof that its unique business model makes sense. Pairing the concept of open-source software development with high-quality support services, Red Hat saw its second-quarter sales surging 21% higher year over year while earnings enjoyed a 40% boost, easily exceeding analyst targets on both counts. Share prices jumped 4% on the news.
To be fair, Red Hat's guidance for this quarter didn't exactly set the bar too high. Management expected sales to land near $699 million, lifting adjusted earnings to $0.67 per diluted share. Instead, Red Hat's revenue stopped at $723 million, yielding non-GAAP earnings of $0.77 per share.
Image source: Red Hat.
Source: Fool.com
