The S&P 500’s top gainers on September 26, 2017, were:
Red Hat, which provides open-source software products to the enterprise community, was the S&P 500’s top gainer on September 26. After falling for five consecutive trading days, Red Hat regained its strength on Tuesday amid the release of its stronger-than-expected 2Q17 results and upbeat guidance. The stock opened higher and rose to the highest levels since January 2000.
2Q17 report and guidance
According to the report, Red Hat recorded EPS (earnings per share) of $0.77 in 2Q17—higher than last year’s second quarter EPS of $0.55 and also higher than the market’s forecast of $0.67. In the second quarter, the revenues rose 20.5% compared to same period a year earlier and recorded $723 million—$23.55 million higher than the market’s forecast.
Management expects the revenue to be $730 million–$737 million—higher than the consensus of $710.92 million. In 2018, the revenue is expected to be $2.88 billion–$2.895 billion—higher than the consensus of $2.81 billion. The strong performance in the second quarter along with upbeat 3Q17 and fiscal 2018 guidance added strong buying momentum to Red Hat on Tuesday.
On September 26, Red Hat rose 4.1% to $110.07. In the next part, we’ll discuss how L Brands performed on September 26.