Earnings Guidance for Financial Year 2016 Issued by Red Hat Inc.

Earnings Guidance for Financial Year 2016 Issued by Red Hat Inc.On Wednesday, Red Hat Inc. announced its update on the earnings guidance for the financial year 2016.

Reportedly, for that period the company gave an EPS guidance of $1.79-1.82 as compared to an estimate of $1.84 given by Thomson Reuter's consensus.

On Wednesday, shares of Red Hat were 1.37 percent down in the mid-day trading and hit $68.45. The company had a volume of 4,159,437 shares trading hands.

The company's shares increased five percent in the afterhours trading on the same day when the company announced a profit that surpassed the average estimation of the analysts for the consecutive eighth quarter.

Red Hat Inc. is the largest commercial distributor in the world for Linux operating system. It also projected a first quarter profit for which was at par with the expectation of the analysts in spite of the dollar going strong, which hurt its revenue.

Red Hat earns almost half of its revenue from the overseas operations and along with Hewlett-Packard Co, Microsoft Corp and IBM Corp it also estimates that the strong rally of the dollar will significantly impact the revenues.

Most of the analysts polled by Reuters were certain that the rally of the dollar will persist almost all through the current year.