Will Red Hat (NYSE: RHT) top $1 billion in annual revenue for the first time this fiscal year?

Quarterly financials are due out Wednesday, and financial analysts are projecting revenues that could mean the $1 billion mark will be reached.

Analysts expect revenues of $271 million with revenues of 25 cents per share, according to SmartTrend.

“Our field work points to a strong Q2, with performance in the core RHEL business continuing to drive results, while JBoss is holding up OK,” Morgan Stanley said in a research note issued Monday, according to Benzinga.

“Our contacts haven’t picked up on any weakness in the demand environment despite a seemingly slowing macro and expectations for the year have actually increased over the last three months, while the next generation of Red Hat Enterprise Virt in Oct. should be a 2H product catalyst. Accelerating growth and positive revisions should drive the stock and we remain buyers.”

Morgan Stanley reaffirmed its “overweight” rating on Red Hat, Benzinga added.

Earnings would be more than double the 12 cents of the same quarter a year ago on revenues of $220 million.

Red Hat shares have traded as high as $49 over the past year. They closed Friday at $41.21 but were down to under $40 early Monday as part of a market-wide retreat.

Shares dipped below $32 on Aug. 19 before rebounding.

For more from SmartTrend, read here.

For an in-depth look at Red Hat’s financial trends, read the SeekingAlpha report here.

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