Red Hat stock fell as much as 7 percent and then rebounded on Wednesday after the software company reported lower revenue than expected for the second quarter of its 2019 fiscal year, which ended on Aug. 31.
Here are the top results:
- Earnings: 85 cents per share, excluding certain items, vs. 82 cents per share as expected by analysts, according to Thomson Reuters.
- Revenue: $822.7 million, vs. $830 million as expected by analysts, according to Thomson Reuters.
Overall, Red Hat's revenue rose 14 percent year over year, according to a statement.
The majority of Red Hat's revenue comes from subscriptions — to distributions of the Linux open-source operating system and other products. Subscription revenue of $722.7 million was up 13 percent. Analysts polled by FactSet had expected $724.1 million in subscription revenue.
Revenue from training and services was also behind what analysts were looking for, at $100 million, whereas the FactSet estimate was $104 million.