Red Hat has surprised the cocaine nose jobs of Wall Street by being able to stick to its profit forcast, despite the US dollar shooting through the roof.
Red Hat predicted it would make a profit for the first quarter that matched analysts’ estimates despite warning on a strong dollar hurting its revenue.
Red Hat shares were up five percent in after-market trading after the company’s profit beat the average analyst estimate for the eighth straight quarter.
The company also said a $500 million share buyback program will replace an existing $300 million programme.
Red Hat gets nearly half its revenue from international operations and expected to suffer from the US dollar’s strong gains. HP, Microsoft and IBM had estimated a significant impact from the dollar’s gains.
The company, whose customers include Adobe and Verizon, forecast an adjusted profit of $469 million-$474 million for the first quarter.
Red Hat also forecast a revenue of $1.99-$2.02 billion for the full year. Analysts were expecting revenues of $2.02 billion.
The company’s billings revenue was $688 million in the fourth quarter. Analysts had expected $646.2 million.
