Red Hat Q2 Earnings Beat Street

"Red Hat Inc., the world's largest publicly traded provider of Linux software, posted a quarterly profit that beat Wall Street targets, helped by strong growth in its subscriptions business.

"Net income for the second quarter rose to $22 million, or 10 cents a share, from $19.1 million, or 9 cents a share, in the year-ago quarter. Excluding special items, earnings were 20 cents a share.

"Revenue rose 29 percent to $164.4 million, which exceeded Red Hat's own forecast of $162 million to $164 million. Revenue from subscriptions, by far its biggest division, rose 19.5 percent.

"Analysts on an average were looking for earnings of 18 cents a share, excluding special items, on revenue of $163.6 million, according to Reuters Estimates.

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