Bank Of America Comments On Red Hat 1Q12 Results

According to Bank Of America, Red Hat RHT reports 1Q12 (May) results 6/22. Bank Of America said that key metrics to watch will be def rev, billings, and operating cash flow, which we estimate to be $770mn (flat q/q), $252mn (+21% y/y ex-currency), and $74mn (+23% y/y), respectively. “Our analysis suggests that billings could be up +25-27% y/y aided by 1) $4-6mn due to currency (Chart 2) and 2) regular seasonality flow through. Our subs rev and pro forma EPS ests are $217mn and $0.22 (in line with cons).” Red Hat closed yesterday at $41.41.