Plantronics Sees Q4 Revenues And Earnings To Be Close To Low End Of Guidance

(RTTNews) - Plantronics Inc. (PLT) said it expects fourth quarter fiscal 2015 revenues and earnings to be close to the low end of guidance. A stop shipment on some EncorePro headsets will adversely impact revenues and guidance in the quarter.

The company said in January that it expected net revenues of $205 million to $215 million, earnings of $0.55 to $0.63 per share and adjusted earnings of $0.67 to $0.75 per share for the fourth-quarter. Analysts polled by Thomson Reuters expect the company to report earnings of $0.70 per share and revenues of $209.55 million for the fourth-quarter. Analysts' estimates typically exclude special items.

The company today stated that it anticipates renewing shipments in the latter part of the first quarter of fiscal year 2016.

Plantronics announced that its board has approved a new return of capital policy that will return more cash flow to shareholders, balance cash return between regular dividends and consistent stock buybacks, and utilize a prudent amount of leverage to enhance shareholder returns.

Plantronics has updated its capital structure policy to increase its intended return of cash to stockholders to approximately 60% of total free cash flow, defined as total operating cash flow less capital expenditures. The company will retain its current cash distribution target of 2/3rds in the form of common stock repurchases and 1/3rd in the form of quarterly dividends.

Plantronics intends to opportunistically buy back common stock with the proceeds of future debt issuance, while maintaining a target corporate debt rating near the high end of the non-investment grade range; such future debt issuance may consist of long term or short term notes, term loans or draws on Plantronics' revolving line of credit.

Plantronics' board of directors announced it has approved a new 3 million share repurchase authorization, increasing its total repurchase authorization to 4 million.