Second Quarterly Report Doesn't Rally Red Hat Stock
Red Hat, Inc. released the financial results the second quarter ending August 31, 2015 in a conference call and press release. With revenues up 13%, beating estimates, Wall Street experts are still recommending caution in the near term explaining a slow day at the markets for Red Hat.
Red Hat stock began the day after the report at $71.45 and fell to below 71.00 before lunch, recovering in the afternoon to close at 72.70 a share. In after hours trading that saw a bit of action is trading at about 72.72 right now after reaching a high of 72.80 a bit earlier. Zacks has Red Hat ranked at Hold currently. Prices had risen after opening Monday at 71.59 to a high of 73.14 in anticipation of the report. Apparently dragging on the stock is a general downturn in the market of late, but some state concerns for billings according to Investor's Business Daily. Stock prices have increased this year nearly 5% overall for Red Hat and Nasdaq.com has community sentiment pegged at bullish this evening.
Highlights of the report include:
* Quarterly total revenue of $504 million, up 13% year-over-year
* Quarterly subscription revenue of $442 million, up 13% year-over-year
* Quarterly operating cash flow of $120 million, up 12% year-over-year
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