Red Hat, Inc. shares rose nearly 5% in after-hours trading on Monday after second quarter financial results surpassed analyst expectations. Since last week, the stock had moved about 3% lower as investors questioned the upcoming financial results, even after Barclays raised its price target from $105.00 to $120.00, citing hybrid cloud deployments as a strong tailwind. The downside movement created a bearish rounding top chart pattern.
During the second quarter, the company reported revenue that rose 20.5% to $723 million – beating consensus estimates by $23.55 million – while net income of 77 cents per share beat consensus estimates by 10 cents per share. The company’s full-year guidance also came in higher than expected at $2.88 billion to $2.89 billion in revenue with non-GAAP operating margins of 23.8% and diluted non-GAAP EPS of $2.77 to $2.79 per share. (See also: Red Hat: Why This Stock Is the Comeback Kid.)
Red Hat stock looked bearish into second quarter earnings, but solid results could send it to key resistance levels. …read more
Read more here: Red Hat Stock Poised to Break Out From Rounding Top