RALEIGH, N. C. – Shares in Red Hat Inc. fell sharply in after-hours trading Wednesday after the open-source software company reported quarterly revenue that fell short of Wall Street expectations.
The company is the forecast for the revenue in the current quarter fell short of forecasts and it announced that the chief financial officer is leaving.
The stock fell by almost 11 percent in the extended trade.
The Raleigh, North Carolina-based company posted a fiscal third-quarter earnings of $67.9 million, or 37 cents per share. Earnings, adjusted for non-recurring items, were 61 cents per share.
That topped Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of 58 cents per share.
But it posted sales of $615.3 million in the period. Eleven analysts polled by Zacks expected $618.5 million.
For the current quarter that ends in February, Red Hat expects adjusted per-share earnings to be 61 cents.
The company said it expects revenue in the range of $614 million to $622 million for the fiscal fourth quarter. Analysts polled by Zacks had expected revenue of $638.4 million.
Red Hat expects full-year adjusted earnings of $2.27 per share, with revenue in a range of $2.4 billion to $2.41 billion.
The company also said that Frank Calderoni will step down as executive vice president, operations and chief financial officer at the end of January to take to the CEO of the post on another public company. Calderoni joined the company in June 2015, after adventures at Cisco Systems and IBM.
Red Hat plans to the name of Eric Shander as CFO, pending a decision on a permanent replacement. Shander is Red Hat’s vice president, finance and accounting and the principal accounting officer.
Red Hat shares have fallen almost 4 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 11 percent.
After the earnings report after the close of the regular session of trading on Wall Street, the stock slipped 48.64 $71.15.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks investment Research. Access a Zacks stock report on RHT on https://www.zacks.com/ap/RHT
Keywords: Red Hat, Earnings Report