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%.
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.
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.