Red Hat Inc (RHT): Stock Prices Crumble As Earnings Miss & CFO Leaves Company

Page 2 of 2

Looking Ahead

Now that we have a better picture of how the year is going to end for Red Hat Inc (NYSE:RHT), it’s time to evaluate the markets reaction to their soft earnings. Earnings were up 19% year-over-year with third quarter subscription revenue jumping 18% proving they are still growing and making deals. Third quarter results were just a bump in the road in my opinion and I fully expect Red Hat to bounce back strong in 2017.

Some positive comments from the CEO following the earnings release:

“Enterprise and service provider customers continue to adopt a hybrid cloud strategy for developing, deploying and managing the life-cycle of their critical applications. Red Hat is uniquely positioned to address this need. In aggregate, customers utilizing our cloud-enabling technologies either on-premise or in the public cloud are spending more with Red Hat than customers that have not yet embraced our cloud-enabling technologies.” said Jim Whitehurst, President and Chief Executive Officer of Red Hat. – Red Hat

Keep this one on your radar as their should be plenty of upside potential in the coming years and if shares get any cheaper it may be a decent spot to buy shares at a discount.

About the Author: Ross

Ross Cameron a full time day trader and is the owner of Warrior Trading (www.warriortrading.com). At Warrior Trading Ross hosts a Day Trading Chat Room and teaches Day Trading Courses to beginner and even advanced traders. Over the years he has offered day trading webinars and seminars for many large companies including eSignal, Trade-Ideas, Lightspeed Financial, and Speedtrader. In 2016 Ross was nominated for a Benzinga Fintech award for Best Educator. You can also follow him on twitter @daytradewarrior.

Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.

Page 2 of 2