September 19, 2018 / 8:27 PM / 3 months ago

Linux provider Red Hat's current-quarter forecast misses estimates

(Reuters) - Linux operating system distributor Red Hat Inc (RHT.N) reported smaller-than-expected revenue on Wednesday, hurt by disappointing subscription revenue, and forecast current-quarter results below estimates.

The company’s shares fell 2 percent in extended trading.

Red Hat said it expects to post revenue in the range of $848 to $856 million and an adjusted profit of 87 cents per share in the third quarter, below analysts’ estimates of a profit of 92 cents per share and revenue of $862.7 million.

Subscription revenue, which accounts for most of Red Hat’s total revenue, rose 13.4 percent to $722.7 million in the second quarter, but below Wall Street estimates of $725.6 million, according to Thomson Reuters I/B/E/S.

The company’s profit fell 10.5 percent to $86.85 million, or 46 cents per share, in the quarter ended Aug. 31.

Total revenue rose 13.7 percent to $822.75 million, below analysts’ estimates of $829.5 million.

Excluding items, Red Hat earned 85 cents per share, beating the average analyst estimate of 82 cents.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Maju Samuel

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