Triangle Business Journal by Chris Baysden, Web Editor Date: Monday, December 19, 2011, 4:49pm EST..
Related: Technology. . . . .
Jim Whitehurst is the CEO at Red Hat. . . .
Related News •Red Hat CFO: We have a Plan B if Duke-Progress merger faces complications •Red Hat to receive Wake County incentives •Local stocks soar with rest of market •Red Hat eyes California for move •TBJ unveils Healthiest Employers of the Triangle winners . Chris BaysdenWeb Editor - Triangle Business JournalEmail The stock of Raleigh-based software company Red Hat .. dropped about 10 percent Monday in after-hours trading even though the company reported earnings that beat analysts’ estimates.
Red Hat reported net income of $38.2 million, an increase of 47 percent compared to the same period a year ago.
Diluted earnings per share were at 19 cents, up from 13 cents in the 2011 third quarter. Analysts polled by Thomson Financial had projected EPS of 26 cents.
Total revenue clocked in at $290 million – up from nearly $236 million in the 2010 third quarter.
As of 4:32 p.m., the company’s stock had dropped 10 percent to $41.50.
“It’s conceivable that the very narrow top-line beat disappointed investors accustomed to a larger upside surprise,” Barron’s wrote.