Red Hat slated for quarterly report on Monday, experts speculate increased profitability in future

Red Hat is expected to report a profitable quarter on Monday next week. The company is increasing its business, expanding services in virtualization and producing new storage products.

Red Hat provides Linux-based software that are inexpensive compared to the old-Unix-based enterprise solutions. Moreover, the company is thriving to grab a bigger share in the cloud computing business. Of late, a huge wave of corporate entities has started to indulge the cloud computing that allows corporate clients and users to store and retrieve data from remote servers. Clouds provide more data storage space at inexpensive prices.

“The underlying business remains strong and customer interest is accelerating in incremental opportunities with virtualization and storage potentially being drivers for the company in the longer term,” Rob Owens, an analyst for Pacific Crest Securities, said in a Sept. 15 report..

The company is also expected to announce the second fiscal quarter financial report on Monday and experts are of the notion that it will record a profit. Their money is on profits of 29 cents a share, minus items. This would be the same EPS as the last year. However, revenues from operations are expected to escalate 14.5 percent from a year earlier to $322.1 Million.

Last quarter the company produced earning per share of 30 cents, up 25 percent, which was up 3 cents on what analysts had purported. The revenues were up 19 percent from the year ago at $315 Million.

Moreover, the company also plans to consolidate all the enterprise solutions in one package which according to Trip Chowdhry, an analyst for Global Equities Research, is a good strategy. Customers feel easy to purchase a single package that provides all the solutions, instead of getting into the thick of complex multiple deals.

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Posted by Usman Khalid on Sep 22 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.