Covidien Plc.’s (NYSE:COV) board of directors approved a $2 billion stock repurchase program today.
"The board’s approval of this share repurchase program reflects its confidence in the continued growth of Covidien’s business, our sustainable free cash flow and our commitment to enhance shareholder value," president & CEO José Almeida said in a press release.
The Mansfield, Mass.-based company just posted a very strong quarter with a 47 percent jump in earnings and a 14 percent boost in sales.
Listen to our recent interview with Covidien CEO Joe Almeida
"We remain committed to maintaining a strong balance sheet, but have no intention of accumulating cash. We will opportunistically look to return excess cash to shareholders, while continuing to fund our growth initiatives, pursue strategic opportunities for business expansion and deliver our financial objectives," Almeida said in prepared remarks.
Covidien, which ranked 9th on the MassDevice Big 100 list of the world’s largest medical device companies, is not alone in announcing stock repurchase programs recently.
Yesterday Masimo Corp. (NDSQ:MASI), which ranked 86th, announced a repurchase program for up to 3 million shares. Earlier this week Abaxis Inc.’s (NSDQ:ABAX) board of directors approved a $40 million common stock repurchase program.
Last week both St. Jude Medical Inc. (NYSE:STJ) and Illumina Inc. (NSDQ:ILMN) announced repurchase programs, St. Jude for up to $500 million and Illumina for up to $100 million.
