Red Hat (RHT) will report second quarter results after the bell (usually at 16:15) and host a call at 17:00.
Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to provide reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies.
Red Hat guided for second quarter non-GAAP EPS of $0.67 (versus $0.55 last year) on revenue of $595-702 million.
Analysts expect billings (revenue plus the change in deferred revenue) to come in near $660 million. Analysts expect another strong quarter and the stock seems to reflect that, trading within a few percent of its all-time highs.
Red Hat will also update FY18 guidance, which currently calls for non-GAAP EPS of $2.66-2.70 on revenue of $2.785-2.825 bln (+17%).
The stock is up ~50% since the company missed 3Q17 sales estimates due to some large Federal contracts being delayed in December of last year (the CFO also departed). The last two quarters came in better than expected.
With a nearly $19 billion market capitalization, Red Hat trades at 6.5x sales estimates or just under 40x adjusted earnings estimates.