Red Hat Results Top Estimates, Announces $500 Mln Buyback; Shares Up 4%

(RTTNews) - Linux software maker Red Hat Inc (RHT) on Wednesday reported fourth-quarter net earnings of $47.7 million or $0.26 per share compared with $45 million or $0.24 per share last year.

Excluding items, adjusted earnings for the quarter were $0.43 per share compared with $0.39 per share a year ago.

Revenues for the quarter were up 16% at $463.9 million compared with $400.4 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.41 per share on revenues of $456.5 million for the quarter. Analysts' estimates typically exclude special items.

Adjusted gross margin for the quarter was flat at 86.2%, while adjusted operating margin slid to 23.8% from 24.3%, the company said.

Separately, Red Hat said its board has authorized the repurchase of up to $500 million of its common stock.

The new program replaces the previous $300 million buyback that is scheduled to expire on March 31, and in which about $220 million was used as of date.