Red Hat: S&P 500’s Top Loser on December 20



Top losers

The S&P 500’s top losers on December 20 were:

  • Red Hat (RHT) fell 5.3%.
  • Chipotle Mexican Grill (CMG) fell 4.6%.
  • Philip Morris International (PM) fell 3.5%.
  • Nielsen Holdings (NLSN) fell 3.4%.
  • Hanesbrands (HBI) fell 2.7%.
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Red Hat 

Red Hat, which is the world’s leading provider of open source solutions, was the S&P 500’s top loser on Wednesday. Despite a strong start this week, Red Hat lost strength as the week progressed and fell to two-week low price levels.

3Q17 earnings

Red Hat’s management announced its 3Q17 earnings after the market closed on Tuesday. According to the announcement, the EPS (earnings per share) in 3Q17 was $0.73, which is better than the expected EPS of $0.7 and its 3Q16 EPS of $0.61. The revenue was $748 million—higher than the forecast of $734.4 million and its 3Q16 revenue $615.3 million. The 15% growth in infrastructure-related subscription revenue to $495 million in 3Q17 boosted the total revenue.


Red Hat expects an EPS of $0.81 in 4Q17—higher than the consensus estimate of $0.75. The revenue outlook was $758 million–$763 million. Despite its strong 3Q17 earnings and 4Q17 outlook, Red Hat opened the day lower and fell to the lowest levels traded since December 6 due to the decreased risk appetite in the market and profit-booking. Red Hat has risen more than 70% to date in 2017, which could have triggered profit-booking after the earnings report.

On December 20, Red Hat fell 5.3% and closed the day at $122.


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