What: Shares of Synchronoss Technologies (NASDAQ:SNCR) jumped today, up by 10% as of 3:33 p.m. ET, after the company announced a $100 million share-repurchase program last night.
So what: The company reported earnings earlier this week, and shares fell after the results left investors unimpressed. Guidance for both revenue and earnings came in below consensus estimates. Things only got worse the next day, too. Following the drop, the board has taken it upon themselves to authorize a new share repurchase program for up to $100 million, which will be executed over the next 12 to 18 months.
Now what: CEO Stephen G. Waldis added that the company is expected to grow revenue, enjoy strong profit margins, and increase free cash flow throughout 2016. The share repurchase program will hopefully take advantage of relatively low share prices in order to deliver value to shareholders. Following two days of selling, the selling pressure may be running out and the stock is bouncing back. The share repurchase program seems to be giving investors a little bit more confidence in the company's prospects and valuation.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Synchronoss Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.