Keep an eye on shares of Red Hat Inc (RHT) in Friday’s trading session. The provider of open source software solutions released its better than expected first quarter earnings results after the closing bell. For the first quarter, Red Hat posted a profit of 44 cents per share on sales of $481 million. The company was expected to earn 41 cents per share on revenue of $472.59 million, according to analysts surveyed by Thomson Reuters. In the same quarter of last year, the company earned 34 cents per share on sales of $423.75 million. Subscription revenue for the first quarter was up 14% from a year ago to $425 million, or a 23% jump measured in constant currency. Red Hat said its earnings beat was helped by the increasing adoption of open-source software and its cloud-based products. Raleigh, N.C.-based Red Hat is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies. The company uses an open source development model that allows it to use the collective input from a global community of contributors to develop, maintain and enhance software. Red Hat is the world’s largest commercial distributor of the Linux operating system. Shares were trading in the red in after-hours trading on Thursday, following the earnings release. TheStreet’s Kurumi Fukushima reports in New York.
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