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Red Hat Inc. Is on a Roll


Red Hat Inc. Is on a Roll

This week, Red Hat (NYSE: RHT) delivered another batch of solid proof that its unique business model makes sense. Pairing the concept of open-source software development with high-quality support services, Red Hat saw its second-quarter sales surging 21% higher year over year while earnings enjoyed a 40% boost, easily exceeding analyst targets on both counts. Share prices jumped 4% on the news.

To be fair, Red Hat's guidance for this quarter didn't exactly set the bar too high. Management expected sales to land near $699 million, lifting adjusted earnings to $0.67 per diluted share. Instead, Red Hat's revenue stopped at $723 million, yielding non-GAAP earnings of $0.77 per share.

Image source: Red Hat.

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Source: Fool.com

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