{"id":43021,"date":"2013-03-28T06:57:00","date_gmt":"2013-03-28T06:57:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/red-hat-shares-plunge-as-q4-revenue-miss-streets-expectation-rht\/43014\/"},"modified":"2013-03-28T06:57:00","modified_gmt":"2013-03-28T06:57:00","slug":"red-hat-shares-plunge-as-q4-revenue-miss-streets-expectation-rht","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/red-hat-shares-plunge-as-q4-revenue-miss-streets-expectation-rht\/43021\/","title":{"rendered":"Red Hat Shares Plunge as Q4 Revenue Miss Street\u2019s Expectation (RHT)"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p>Despite reporting better-than-expected earnings thanks to 17% revenue growth in the fiscal fourth quarter, shares of open-source Linux operating system provider, Red Hat Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=RHT\" target=\"_blank\" rel=\"noopener\">NYSE: RHT<\/a>) fell about 3.70% in aftermarket hours on Wednesday as revenue fell short of Street\u2019s estimate.<\/p>\n<p><span id=\"more-43021\"><\/span><\/p>\n<p>The Raleigh NC based Company said that total revenue, which included proceeds from subscriptions, training and services, rose to $347.88 million from $297.01 million, in the same quarter of last year. Analysts polled by Thomson Reuters, on average, were expecting revenue of $349.64 million.<\/p>\n<p>Amid strong demand for its Linux Software, Red Hat posted consistent quarterly revenue growth in the recent past.<\/p>\n<p>As more and more companies switched to cloud computing, demand for its open source software products rose sharply. The Company is the market-leader in Linux software.<\/p>\n<p>However, worsening macroeconomic environment in the <a href=\"http:\/\/www.knowfinance.com\/euro-zone\/\" target=\"_blank\" rel=\"noopener\">euro zone<\/a> and rise in payroll taxes in the U.S. are delaying businesses\u2019 plans to upgrade to Red Hat\u2019s Linux software from older Unix systems, said Richard Williams, an analyst at Cross Research, according to Bloomberg. This is turn, is putting pressure on revenue.<\/p>\n<p>Besides, another cause for concern is higher operating cost. For the recently concluded quarter, operating margin fell to 24% from 26%, in the same quarter of last year.<\/p>\n<p>For the fiscal fourth quarter, Red Hat reported a profit of $42.97 million or 22 cents a share, compared to a profit of $35.97 million or 18 cents a share.<\/p>\n<p>After adjusting for onetime items, adjusted or non-GAAP earnings came at 36 cents a share up from 29 cents a share. Analysts\u2019 consensus forecast was earnings of 30 cents a share.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20130402165628\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.4\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fred-hat-shares-plunge-as-q4-revenue-miss-streets-expectation-rht%2F43021&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n<script id=\"mNCC\" language=\"javascript\">  medianet_width='600';  medianet_height= '250';  medianet_crid='814932888';  <\/script>  <script id=\"mNSC\" src=\"https:\/\/web.archive.org\/web\/20130402165628js_\/http:\/\/contextual.media.net\/nmedianet.js?cid=8CUT71M67\" language=\"javascript\"><\/script> \n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/u-s-stocks-trade-higher\/43102\">\nU.S. Stocks Trade Higher<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-edge-higher-in-early-trading-12\/43095\">\nStocks Edge Higher in Early Trading<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/forex-market-update-yen-inches-up-against-dollar-euro-falls\/43094\">\nForex Market Update: Yen Inches Up Against Dollar, Euro Falls<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-slid-silver-prices-slip-as-well\/43089\">\nGold Prices Slid, Silver Prices Slip as Well<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stock-futures-edge-higher-9\/43086\">\nStock Futures Edge Higher<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/shoe-carnival-reports-q4-results-scvl\/43083\">\nShoe Carnival Reports Q4 Results (SCVL)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/urban-outfitters-expect-high-single-digit-comparable-store-sales-for-q1-shares-jump-in-afterhours-trading\/43081\">\nUrban Outfitters Expect High Single Digit Comparable-Store Sales for Q1, Shares Jump in Afterhours Trading<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20130402165628im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n\n<!--script type=\"text\/javascript\">\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\n<\/script>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script-->\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite reporting better-than-expected earnings thanks to 17% revenue growth in the fiscal fourth quarter, shares of open-source Linux operating system [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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