Red Hat, Inc. (RHT) Tops Q4 Views

Red Hat, Inc. (RHT) reported fourth quarter non-GAAP EPS of $0.43 in the extended session Wednesday, compared to the consensus estimate of $0.41. Revenues increased 15.9% from last year to $463.9 million. Analysts expected revenues of $456.5 million. The stock is currently up $2.85 to $71.30 on 3.20 million shares.

For the full-year 2014, the company reported non-GAAP adjusted net income of $303 million, or $1.60 per share, compared to $285 million or $1.49/shr for the previous fiscal year. Revenue was reported as $1.79 billion, up 17% in U.S. dollars year-over-year, or 19% measured in constant currency.

“Our strong fourth quarter marked the 52nd consecutive quarter of revenue growth and we exited the fiscal year with a record total backlog over $1.86 billion, up 19% year-over-year,” said in press release Charlie Peters, Executive VP and CEO of Red Hat.

The company also announced that its Board of Directors has authorized the repurchase of up to $500 million of its common stock. The new program replaces the previous $300 million repurchase program that is scheduled to expire on March 31, 2015.

On valuation measures, Red Hat Inc. shares, which currently have an average 3-month trading volume of 1.14 million shares, trade at a trailing-12 P/E of 72.82, a forward P/E of 37.08 and a P/E to growth ratio of 2.96. The median Wall Street price target on the name is $75.00 with a high target of $81.00. Currently ticker boasts 20 ‘Buy’ endorsements, compared to 9 ’Holds’ and 1 ‘Sell’.

Profitability-wise, RHT has a t-12 profit and operating margin of 10.29% and 14.24%, respectively. The $12.55 billion market cap company reported $1.04 billion in cash in its most recent quarter.

RHT currently prints a one year return of about 21.60% and a year-to-date return of 0.38%.

The chart below shows where the equity has traded over the last 52 weeks.

Red Hat Inc. provides open source software solutions to enterprise customers worldwide.The company was founded in 1993 and is headquartered in Raleigh, North Carolina.

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