LONDON, UK / ACCESSWIRE / January 11, 2018 / Active-Investors.com has just released a free earnings report on Red Hat, Inc. (NYSE: RHT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RHT. Red Hat reported its third quarter fiscal 2018 operating results on December 19, 2017. The open-source software Company outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Red Hat most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Red Hat's total revenue for the quarter was $747.98million compared to revenue of $615.26 million in Q3 FY17, up 22% in USD, or 20% measured in constant currency. The Company's revenue topped analysts' estimates of $734.4 million.

Red Hat's GAAP operating income for Q3 FY18 surged 47% on a y-o-y basis to $118.41 million compared to $80.77 million in Q3 FY17. After adjusting for non-cash share-based compensation expense, amortization of intangible assets, and transaction costs related to business combinations, the Company's non-GAAP operating income for the reported quarter was $179 million, up 25% on a y-o-y basis. Red Hat's Q3 FY18 GAAP operating margin was 15.8% and non-GAAP operating margin was 23.9%.

Red Hat reported GAAP net income for Q3 FY18 of $101.31 million, or $0.54 per diluted share, compared to $67.94 million, or $0.37 per diluted share, in Q3 FY17. On an adjusted basis, the Company's non-GAAP net income for the reported quarter was $133 million, or $0.73 per diluted share, compared to $111 million, or $0.61 per diluted share, in the year-ago same quarter, and came in ahead of Wall Street's estimates of $0.70 per share.

Red Hat's Segment Results

During Q3 FY18, Subscription revenue was $657 million, up 21% in USD year-over-year, or 19% measured in constant currency. The Company's Subscription revenue in the reported quarter was 88% of total revenue.

For Q3 FY18, Subscription revenue from Infrastructure-related offerings was $495 million, reflecting an increase of 15% in USD on a y-o-y basis, or 14% measured in constant currency. The Company's Subscription revenue from Application Development-related and other emerging technology offerings for the reported quarter was $162 million, an increase of 44% in USD y-o-y, or 42% measured in constant currency.

Cash Matters

During Q3 FY18, Red Hat's operating cash flow was $160 million reflecting growth of 18% on a y-o-y basis. The Company's total cash, cash equivalents, and investments as of November 30, 2017, was $2.32 billion after repurchasing approximately $100 million, or 838,000 shares, of common stock in the reported quarter. Red Hat's remaining balance in the current repurchase authorization as of November 30, 2017, was approximately $399 million.

At the end of Q3 FY18, Red Hat's total deferred revenue balance was $2.11 billion, up 23% on a y-o-y basis. The full year impact to total deferred revenue from changes in foreign exchange rates was $69 million on a y-o-y basis.

Outlook

For the fiscal year 2018, Red Hat is forecasting revenue to be in the range of approximately $2.906 billion to $2.911 billion. The Company's GAAP operating margin is expected to be approximately 16.1% and non-GAAP operating margin is expected to be approximately 23.9%. Red Hat is estimating fully diluted GAAP earnings per share (EPS) to be approximately $2.02 per share, and non-GAAP EPS is expected to be approximately $2.88 per share. The Company's operating cash flow is expected to be approximately $900 million to $910 million.

For Q4 FY18, Red Hat is projecting revenue to be in the range of $758 million to $763 million. The Company's GAAP operating margin is expected to be approximately 16.7% and non-GAAP operating margin is expected to be approximately 24.6%. Red Hat is anticipating GAAP EPS is expected to be approximately $0.54 per share, and non-GAAP EPS to be approximately $0.81 per share.

Stock Performance Snapshot

January 10, 2018 - At Wednesday's closing bell, Red Hat's stock slightly advanced 0.29%, ending the trading session at $124.51.

Volume traded for the day: 1.85 million shares, which was above the 3-month average volume of 1.56 million shares.

Stock performance in the last three-month ? 5.20%; previous six-month period ? up 25.97%; past twelve-month period ? up 73.75%; and year-to-date ? up 3.67%

After yesterday's close, Red Hat's market cap was at $22.00 billion.

Price to Earnings (P/E) ratio was at 67.71.

The stock is part of the Technology sector, categorized under the Application Software industry.

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