Despite a good quarter Red Hat (RHT) is being smashed in the after hours session to the tune of 11%+. The company beat by a few million on the top line and 3 cents on the bottom line. However, the twitter community is saying deferred revenue and billings were light – which is what the stock is reacting to. I am going to say once more this earnings season is going to be one of the more trecherous the market has faced in a few years, mostly due to guidance and too high of expectations. The major slowdown in Europe does not seem to be baked in at the micro level.
That said in the near term, we have a resilient market the past few weeks so let us respect that – the heart of earnings season is not for 3-4 weeks.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog