U.S. stocks were in negative territory on Friday, after yesterday's record high. The Dow Jones Industrial Average fell 0.01% to 26,754, the S&P 500 index slid 0.16% to 2,949 and the Nasdaq Composite Index declined 0.25% to 8,030.
Shares of Red Hat Inc. (RHT, Financial) were flat on Friday after the company announced first-quarter results. Revenue grew 14.8% from the prior-year quarter to $934.11million, beating analysts’ estimates by $2.53 million. Earnings were $1.00 per share, beating estimates by 14 cents.
“The first quarter was a strong start to FY20, with double digit growth across a number of our financial metrics, including 15% total revenue growth year-over-year in U.S. dollars, or 18% measured in constant currency; and 24% in U.S. dollars, or 29% in constant currency, growth year-over-year in our Application Development-related and other emerging technology revenue,” said Eric Shander, executive vice president and chief financial officer.
For the quarter, subscription revenue was $815 million, up 15% year-over-year. Subscription revenue was 87% of total revenue. Services revenue was $119 million, up 17% year-over-year.
GAAP operating income was $132 million, up 18%, while non-GAAP adjusted operating income reached $202 million, up 20%. The GAAP operating margin was 14.1% and non-GAAP adjusted operating margin was 21.7%.
Gainers
• Adobe Inc. (ADBE, Financial)”‹
• Xilinx Inc. (XLNX, Financial)
• Fastenal Co. (FAST, Financial)
• Cisco Systems Inc. (CSCO, Financial)
• CSX Corp. (CSX, Financial)
Losers
• American Airlines Group Inc. (AAL, Financial)
• United Continental Holdings Inc. (UAL, Financial)
• Advanced Micro Devices Inc. (AMD, Financial)
• Equinix Inc. (EQIX, Financial)
Global markets
The main European stock markets traded mostly lower. The U.K.'s FTSE 100 fell 0.15%, France's CAC 40 dipped 0.16%, Germany's Dax slid 0.15% and Spain's Ibex 35 climbed 0.25%.
In Asia, Japan's Nikkei 225 fell 0.95%, India’s BSE Sensex declined 1.03%, Hong Kong's Hang Seng retreated 0.27% and China's Shanghai Compositeclosed 0.50% higher.
Disclosure: The author holds no positions in any stocks mentioned.
