Why Plantronics Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Plantronics (NYSE: PLT  ) pushed past 10% gains early this morning after reporting earnings that came in ahead of analyst estimates. The sound specialist impressed the Street with $181.4 million in revenue and $0.63 per share in adjusted EPS. That beat the $179 million consensus estimates for revenue and the $0.61 in EPS that analysts predicted. The combination of those beats and the announcement of a new share-repurchase plan was enough to put some wind in the stock's sails today.

So what: By announcing its intent to buy back 1 million shares, Plantronics has committed itself to a rather modest $37 million repurchase at current prices. There's $384.7 million in cash on the balance sheet, more than enough to take care of this repurchase -- but only $13 million of that amount was held domestically, according to the company's earnings call.

Now what: Plantronics has been a rather flat stock over the past two years, with a few ups and downs that wind up returning to the same baseline. Nothing in the company's earnings were so out of the ordinary that it would indicate a long-term change in Plantronics' fortunes, and as the stock now trades at the higher end of its two-year range, today might be a good time to take some gains if you've made them.

Want more news and updates? Add Plantronics to your watchlist now.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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