WASHINGTON (dpa-AFX) - Linux software maker Red Hat Inc (RHT), Thursday reported a drop in profit for the third quarter despite a 15 percent growth in revenues, as bottom line was hurt by strong US dollar. However, earnings for the quarter topped Wall Street estimates by a penny, while revenues fell short.
Raleigh, North Carolina-based Red Hat's third-quarter profit dropped to $46.8 million or $0.25 per share from $47.9 million or $0.26 per share last year.
Adjusted earnings for the quarter rose to $0.48 per share from $0.42 per share last year. On average, 29 analysts polled by Thomson Reuters estimated earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the third quarter grew 15 percent to $523.6 million from $455.9 million last year. Revenues were up 21 percent in constant currency. Analysts had a consensus revenue estimate of $524.34 million for the quarter.
Subscription revenue, which represents about 87 percent of total revenues, increased 16 percent to $457 million.
'Our investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing,' stated Jim Whitehurst, President and Chief Executive Officer of Red Hat.
For the fourth quarter, Red Hat expects adjusted earnings of about $0.47 per share and revenues of $535 million to $539 million. Analysts currently estimate earnings of $0.48 per share on revenues of $533.37 million.
For the full year, Red Hat expects adjusted earnings of about $1.86 per share and revenues of $2.044 billion to $2.048 billion. Earlier, Red Hat predicted adjusted earnings of $1.85 - $1.87 per share and revenue of $2.034 billion - $2.044 billion. Analysts currently estimate earnings of $1.85 per share on revenues of $2.04 billion.
RHT closed Thursday's trading $78.86, up $0.09 or 0.11%, on the NYSE. The stock further gained $4.40 or 5.58% in the after-hours trade.
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