Diamonds and Dogs
The cloud is in demand. Cloud software maker, Red Hat (RHT) is jumping 4% after beating earnings estimates and guiding higher for the third quarter and full year estimates. Revenues rose 19% year over year to $599.8 million as business once again accelerated. At least four analysts upgraded the stock with new price targets ranging from $88 to $95 a share. Good news for Red Hat and cloud computing companies.
Jabil short-circuited. Jabil Circuits (JBL) is down 4% following disappointing earnings. The company profits came in at $52.91 million, or $0.28 per share, down from $103.22 million, or $0.53 per share, in last year's fourth quarter. Revenue for the quarter fell 5.3% to $4.43 billion. The earnings actually beat reduced estimates, but clearly business is not very strong right now.