St. Jude Medical Inc. (NYSE:STJ) and Illumina Inc. (NSDQ:ILMN) both announced share repurchase programs this week after reporting second quarter earnings.
St. Paul, Minn.-based St. Jude’s board of directors authorized up to $500 million to repurchase shares, which will be made available for general corporate purposes and for offsetting dilution associated with employee benefit plans.
St. Jude, which ranked 15th in the MassDevice Big 100 list of the world’s largest medical device companies, had about 330 million shares of common stock outstanding at its last count, according to the release.
St. Jude reported a $241 million profit on about $1.44 billion in sales during the second quarter ended July 2, a 5.5 percent drop from the $254 million profit the company made on $1.31 million during the same period last year.
Included in the company’s earnings was a $32 million restructuring charge related to the shuttering of a Swedish manufacturing facility for CRM products in favor of more affordable locations in Puerto Rico and Malaysia, which will result in the loss of about 450 workers
San Diego, Calif.-based Illumina plans to repurchase $100 million shares, which will add to the $100 million share repurchase program that ended last week.
"Since 2008, we have bought over 12 million shares of our common stock through prior authorizations, returning nearly $450 million to shareholders," Illumina’s senior VP, general manager of life sciences and CFO said in a release. "Through the board’s new authorization, we expect to continue our share repurchase programs."
Illumina had a pretty strong quarter, touting $287 million in sales in the three months ended July 3, a 36 percent increase from the $212 in sales posted for the same period last year.
The diagnostics company’s profits came in at $30.6 million, or 22 cents per diluted share, a 3 percent increase from last year’s $29.8 million, or 21 cents per diluted share.