Friday, December 21, 2012

RHT Rising: FYQ3 Beats, Buys Startup ManageIQ; Q4 View Light

Enterprise software maker Red Hat (RHT) this afternoon reported fiscal Q3 revenue that topped analysts’ expectations, and profit per share that was in line with consensus.

Revenue in the three months ended in November rose to $344 million, yielding EPS of 29 cents.

Analysts had been modeling $338 million and 29 cents.

Billings came in at $378 million, above the consensus $372 million.

Separately, the company said it will purchase startup ManageIQ, which provides management and automation programs for cloud computing, for $104 million in cash.

Red Hat shares are up $2.74, or 5%, at $55.35 in late trading.

Red Hat said the addition of ManageIQ will for a number of new “solutions” pertaining to cloud computing, such as “CloudForms,” which, it said, “enables the management, brokering and aggregation of capacity across various virtualization and cloud providers as well as the management of applications across hybrid clouds.”

Red Hat will host a conference call with analysts at 5 pm, Eastern time, and you can catch the webcast of it here.

Update: During the conference call, Red Hat projected revenue this quarter in a range of $347 million to $350 million, and EPS in a range of 29 cents to 30 cents. That is below the average estimate on the Street of $350.8 million and 30 cents.

Shares remain elevated in late trading, up $2.64, or 5%, at $55.25.

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