Red Hat easily tops Q1 views

Investor's Business Daily

Shares of open-source software maker Red Hat (RHT) rose after it reported higher-than-expected Q1 revenue and earnings growth as paid subscription revenue climbed 18% vs. a year ago to $372 mil. The world's largest commercial distributor of the Linux operating system says that Q1 EPS rose 6% to 34 cents, a penny above views. Sales grew 16.6% to $424 mil vs. consensus for $414 mil. CFO Charlie Peters says that the global company saw double-digit sales in every geographic region. Shares closed 1.3% higher to 53.10, then rose 3.6% to 55.01 in after-hours trading.

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