LONDON, UK / ACCESSWIRE / July 12, 2018 / If you want access to our free earnings report on Red Hat, Inc. (NYSE: RHT), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RHT. The Company reported its first quarter fiscal 2019 operating and financial results on June 21, 2018. The Linux operating system distributor outperformed top- and bottom-line expectations. Additionally, the Company provided its guidance for the upcoming quarter and full fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2019, Red Hat's total revenues jumped 20% to $813.5 million compared to $676.8 million in Q1 FY18. The Company's revenue numbers beat analysts' estimates of $807.5 million.

During Q1 FY19, Red Hat's subscription revenues advanced 19% to $711.5 million on a y-o-y basis compared to $597.5 million in Q1 FY18. For Q1 FY19, Red Hat's subscription revenues from Infrastructure-related offerings advanced 14% to $522 million on a y-o-y basis. The Company's subscription revenues from Application Development-related and other emerging technology offerings were $189 million in the reported quarter, reflecting an increase of 37% on a y-o-y basis.

Red Hat's GAAP operating income was $112.2 million in Q1 FY19, up 25% compared to $89.7 million in Q1 FY18. After adjusting for non-cash share-based compensation expenses, amortization of intangible assets, and transaction costs related to business combinations, the Company's non-GAAP operating income was $168 million in the reported quarter, up 19% on a y-o-y basis. For Q1 FY19, Red Hat's GAAP operating margin was 13.8% and its non-GAAP operating margin was 20.7%.

Red Hat reported a GAAP net income of $113.2 million, or $0.59 per diluted share, in Q1 FY19 compared to $75.3 million, or $0.41 per diluted share, in Q1 FY18. After adjusting for non-cash share-based compensation expenses, amortization of intangible assets, transaction costs related to business combinations, and non-cash interest expenses related to the debt discount, the Company's non-GAAP net income was $133 million, or $0.72 per diluted share, in the reported quarter compared to $104 million, or $0.58 per diluted share, in the year ago same quarter, and was ahead of Wall Street's estimates of $0.68 per share.

Cash Matters

During Q1 FY19, Red Hat generated an operating cash flow of $346.2 million, up 34% compared to $257.9 million in Q1 FY18. The Company's total cash, cash equivalents, and investments balance was $2.5 billion, after repurchasing approximately $150 million, or 949,000 shares, of common stock in the reported quarter. At the end of Q1 FY19, Red Hat's total deferred revenue balance was $2.4 billion, reflecting an increase of 19% on a y-o-y basis.

On June 21, 2018, Red Hat announced that its Board of Directors has authorized the repurchase of up to $1 billion of its common stock. The new program will replace the previous $1 billion repurchase program that will expire on June 30, 2018. From its commencement on July 01, 2016, through June 20, 2018, the Company repurchased approximately 8.2 million shares of its common stock for $751 million under the previous program.

Outlook

For the full fiscal year 2019, Red Hat is forecasting revenues to be in the range of approximately $3.375 billion to $3.410 billion. The Company's GAAP operating margin is expected to be approximately 16.4%, and its non-GAAP operating margin is expected to be approximately 23.9%. For FY19, Red Hat is projecting GAAP earnings per share to be in the band of $2.36 to $2.40, and non-GAAP earnings per share to be approximately $3.44 to $3.48. The Company's operating cash flow is expected to be approximately $1.035 billion to $1.045 billion for FY19.

For the second quarter of the fiscal year 2019, Red Hat is forecasting revenues to be approximately $822 million to $830 million. The Company's GAAP operating margin is expected to be approximately 15.1%, and its non-GAAP operating margin to be approximately 23.0% for the upcoming quarter. For Q2 FY19, Red Hat is estimating GAAP earnings per diluted share to be approximately $0.50, and non-GAAP earnings per diluted share to be approximately $0.81.

Stock Performance Snapshot

July 11, 2018 - At Wednesday's closing bell, Red Hat's stock advanced 2.07%, ending the trading session at $145.00.

Volume traded for the day: 2.64 million shares, which was above the 3-month average volume of 2.10 million shares.

Stock performance in the previous six-month period - up 16.79%; past twelve-month period - up 48.86%; and year-to-date - up 20.73%

After yesterday's close, Red Hat's market cap was at $25.67 billion.

Price to Earnings (P/E) ratio was at 63.29.

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

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