Research Desk Line-up: Progress Software Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Red Hat, Inc. (NYSE: RHT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RHT, following the Company’s posting of its second quarter fiscal 2018 financial results on September 25, 2017. The open-source software Company outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:
Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Progress Software Corporation (NASDAQ: PRGS) for due-diligence and potential coverage as the Company announced on September 27, 2017, its financial results for Q3 FY17 which ended on August 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Progress Software when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RHT; also brushing on PRGS. With the links below you can directly download the report of your stock of interest free of charge at:
For the second quarter of the fiscal year 2018 ended August 31, 2017, Red Hat’s revenue jumped 21% to $723.36 million compared to revenue of $599.81 million for Q2 FY17. The Company’s revenue topped analysts’ expectation of $699.6 million.
Red Hat’s GAAP operating income soared 64% to $134.56 million for Q2 FY17 compared to $81.88 million in Q2 FY17. The Company’s non-GAAP operating income was $191 million for the reported quarter, up 40% on a y-o-y basis. For Q2 FY18, Red Hat’s GAAP operating margin was 18.6% and non-GAAP operating margin was 26.4%.
Red Hat posted GAAP net income of $97 million, or $0.53 per diluted share, for Q2 FY18 compared to $59 million, or $0.32 per diluted share, in Q2 FY17.
After adjusting for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations, and non-cash interest expense related to the debt discount, the Company’s non-GAAP net income for the reported quarter was $138 million, or $0.77 per diluted share, compared to $101 million, or $0.55 per diluted share, in the year-ago same quarter. Red Hat’s earnings results beat Wall Street estimates of $0.67 per share.
During Q2 FY18, Red Hat’s Subscription revenue rose 20% to $637.56 million versus $531.21 million in Q2 FY17. Subscription revenue in the reported quarter was 88% of total revenue.
Red Hat’s Subscription revenue from infrastructure-related offerings was $487 million for Q2 FY18, reflecting growth of 14% on a y-o-y basis. The Company’s Subscription revenue from Application Development-related and other emerging technology offerings for the reported quarter surged 44% to $150 million on a y-o-y basis.
Red Hat’s operating cash flow totaled $142.90 million for Q2 FY18, reflecting an increase of 48% compared to operating cash flow of $96.80 million for Q2 FY17. The Company’s total cash, cash equivalents, and investments as of August 31, 2017, was $2.31 billion after repurchasing approximately $75 million, or 765 thousand shares, of common stock in the reported quarter. Red Hat’s remaining balance in the current repurchase authorization was approximately $499 million as of August 31, 2017.
At the end of Q2 FY18, Red Hat’s total deferred revenue balance was $2.05 billion, an increase of 22% on a y-o-y basis The full year positive impact to total deferred revenue from changes in foreign exchange rates was $37 million y-o-y.
For FY18, Red Hat is forecasting revenue to be in the range of approximately $2.880 billion to $2.895 billion. The Company’s GAAP operating margin is expected to be approximately 15.9% and non-GAAP operating margin is expected to be approximately 23.8%.
For FY18, Red Hat’s GAAP earnings are projected to be approximately $1.89 to $1.91 per diluted share. The Company’s non-GAAP EPS is expected to be approximately $2.77 to $2.79 per share, and operating cash flow is expected to be approximately $880 million to $900 million.
For Q3 FY18, Red Hat is estimating revenue to be in the band of approximately $730 million to $737 million. The Company’s GAAP operating margin is expected to be approximately 15.2% and non-GAAP operating margin is expected to be approximately 23.7%.
Red Hat is anticipating GAAP EPS to be approximately $0.48 per share, while non-GAAP EPS is expected to be approximately $0.70 per share.
At the closing bell, on Thursday, October 05, 2017, Red Hat’s stock rose 2.47%, ending the trading session at $115.52. A total volume of 2.09 million shares have exchanged hands, which was higher than the 3-month average volume of 1.50 million shares. The Company’s stock price soared 19.65% in the last three months, 35.91% in the past six months, and 45.44% in the previous twelve months. Moreover, the stock skyrocketed 65.74% since the start of the year. The stock is trading at a PE ratio of 69.30 and currently, has a market cap of $20.48 billion.
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