Hansen Announces Share Buyback - Analyst Blog
October 14 2011 - 6:30AM
Zacks
Corona, California-based
manufacturer of beverages, Hansen Natural
Corporation (HANS) in a bid to enhance shareholders’ value
and retain their long-term confidence in the company recently
announced a share repurchase program. As per the announcement, the
company will repurchase common shares worth $250 million.
Hansen stated that currently it has
no shares outstanding for repurchase as the company has completed
its previously announced share buyback program worth $200 million.
As of June 30, 2011, Hansen had about 93.6 million shares
outstanding.
Hansen remains committed to
enhancing shareholders’ value by returning capital through share
repurchases. These strategies will bolster shareholders' return and
raise the market value of the stock.
Further, Hansen possesses strong
liquidity to support the share buyback program. At the end of
the second quarter, the company had cash and cash equivalents of
$418.2 million.
In the recently concluded quarter,
Hansen posted earnings per share of 90 cents comprehensively
beating the Zacks Consensus Estimate of 83 cents and the year-ago
quarter earnings of 69 cents. The better-than-expected results were
driven by double-digit top-line growth.
Hansen’s gross sales surged 27.0%
year over year in the second quarter to $527.5 million and net
sales jumped 26.4% to $462.1 million. Gross margin slipped by 10
basis points to 52.8% due to higher cost of sales. However,
operating income for the quarter rose 20.8% to $132.5 million.
Currently, we maintain our
long-term Outperform recommendation on the stock. Moreover, Hansen
holds a Zacks #1 Rank, which translates into a short-term ‘Strong
Buy’ rating. Hansen's peers include Pepsico, Inc.
(PEP) and National Beverage Corp. (FIZZ).
NATL BEVERAGE (FIZZ): Free Stock Analysis Report
HANSEN NATURAL (HANS): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
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