Retailer Pacific Sunwear of California Inc. said Thursday its board authorized a plan to buy back up to an additional $50 million in stock from time to time. During fiscal 2008, the company bought back 5 million shares at an average price of $10.05 per share for about $50.5 million. The company also recently posted a surprise 3 percent rise in June sales at stores open at least a year as increased promotions attracted more shoppers to its stores. Analysts on average had expected the surf-inspired clothing chain's June same-store sales to fall 1.8 percent, according to Thomson Reuters Estimates. "Geographically, comps (comparable store sales) were strongest in Texas and the Midwest and remained weakest in the Desert Southwest, California and Florida," Chief Financial Officer Michael Henry said in a pre-recorded call. Apparel sales rose 17 percent in June and accounted for 81 percent of total sales, Henry said. In the junior's category, Pacific Sunwear saw strength in Bullhead denim, tops, swimwear and dresses this month. The young men's category was helped by higher sales of Bullhead denim, shorts and tops. The company said total PacSun sales for the five weeks of fiscal June ended July 5, rose 5 percent to $127.2 million from the year-ago period. Pacific Sunwear, which has been closing its underperforming demo stores, separately said it plans to buy back $50 million common shares. Thomas Weisel Partners analyst Liz Dunn said she was "impressed" with the retailer's same-store sales' performance in June as well as its buyback activity. She raised her second-quarter earnings estimates to 8 cents a share from 5 cents. The stock trades for 5x cash flow.

Business software company Lawson Software Inc. said recently that its board approved another $200 million to repurchase shares of the company's common stock. That brings its total available buyback authorization to $239.5 million. The board had authorized another $200 million by April 2007, and so far the company has spent $160.5 million to repurchase 18 million shares. The stock trades for 10x cash flow.

Rochester, NY's imaging giant announced that its board approved the repurchase of up to $1 billion in common stock. A repurchase of this size, which is authorized throughout the end of 2009, could reduce total outstanding shares by as much as 25%. The company will fund the buyback with cash on hand and proceeds from a tax refund issued by the IRS. The tax refund is worth $581 million and is related to certain claims filed from 1993-1998. The refund is made up of past federal income taxes paid of $306 million and $275 million. "Our Board's decision to authorize this repurchase initiative underscores the rising confidence we have in Kodak's product portfolio, in our current financial position, and in the execution of our strategy," said Antonio M. Perez, Chairman and CEO. He continued, "we strongly believe that at the current price, the purchase of our own stock is an appropriate use of our cash and will further enhance long-term shareholder value." On May 1st, Kodak reported a first quarter loss of $114 million or 40 cents a share, compared to a loss of $175 million or 61 cents a share in the same period last year. Total revenue was $2.09 billion, up 1% from $2.08 billion. A price hike in raw materials cost, which are used to make film and plates for commercial printers, drastically hurt first quarter earnings.

The parent company for the Chicago Mercantile Exchange and Chicago Board of Trade said it will repurchase as many as $1.1 billion in common stock and offer a special dividend of about $350 million. The Chicago-based company added that it will complete the stock buyback within 18 months. CME has been in the process of trying to acquire the energy and metals exchange, NYMEX. The U.S. Department of Justice approved the deal but CME is still waiting for support by NYMEX members and shareholders. Since the deal was first valued at $11.2 billion in January, some NYMEX members say they will oppose CME's current $8.7 billion offer. By initiating the new buyback and special dividend, CME is trying to entice NYMEX members to approve the merger. After the company completes the $8.7 billion purchase, CME will pay out the $5 a share dividend. CME, which has been trading on the NYSE and Nasdaq since 2005, will officially stop trading on the NYSE next week and therefore will only trade on the Nasdaq. The move is expected to cause tension between NYX, the parent company of NYSE, and the CME because NYSE had plans to start doing business in the futures market, which is dominated by CME. The world's largest futures exchange reported first quarter earnings that more than doubled to $284 million or $5.25 a share from $130 million, or $3.69 reported in the same period last year. The merger between Chicago Mercantile Exchange and CBOT can be credited for most of the earnings increase. Jonathan Casteleyn from Wachovia Capital Markets has an outperform rating on the stock and commented, "CME Group has discounted many negative catalysts including new competition, delevering within financial trading, and new lowered earnings expectations." He continued, "We assign a long term franchise value which warrants an Outperform rating".

The San Jose-based maker of semiconductor equipment added 15 million shares to its buyback plan. The company expects the buyback to be completed within 15 months. Word of the buyback, in combination with news that worldwide chip sales jumped 7.5% in May to $21.8 billion, forced KLAC shares to climb $1.26 to $40.97, or 3.2%. In late April, KLA-Tencor reported disappointing 3rd quarter earnings with net income down 28% to $111 million or 61 cents a share, from $155 million or 76 cents a share in the year earlier period. Total sales sunk 16% to $602 million. During the quarter the company repurchased $180 million in common stock and paid out $27 million in dividends. For the fourth quarter, the company expects orders to drop about 5% with revenue between $560 million and $580 million. KLAC reported the three month average billings for May at $1.31 million, a 2% drop from the previous month, and down 21% from the same period last year. Analysts from Wall Street Strategies acknowledge the unfavorable supply-demand conditions right now in the semiconductor business, but commented, "We believe the Company is well positioned to be one of the first to benefit from the soon to come upturn in demand from the semiconductor industry." The analysts have a buy rating on KLAC and a $47.50 price target.

Kansas City's tax services giant authorized $2 billion in share repurchases for the four year period 2009 through 2012. As the company aims to strengthen its balance sheet this year, they added that the buybacks will not start until the fourth quarter of 2009. This new buyback replaces the company's previous buyback plan, which had about 22 million shares remaining. The board also voted to increase the annual dividend by 3 cents to 60 cents a share. The inflated dividend stands as the 11th consecutive year of dividend increases. While most U.S. companies have been reporting dismal earnings due to the slowing economy, H&R Block recently announced stellar fourth quarter and full year results. In the fourth quarter, the company earned $543.6 million or $1.66 a share, compared with a loss of $85.6 million or 26 cents a share in the same period last year. Revenue for the quarter jumped 11% to $2.61 billion and revenue for the year was up 9.5% at $4.4 billion. "During fiscal 2008, H&R Block served the tax needs of 23.5 million clients, the highest level in our history. Full year earnings per share from continuing operations exceeded our expectations, and reflect the best tax season for H&R Block since 1999", said Richard C. Breeden, Chairman of the Board. After the report, HRB shares surged 6.4% or $1.40 to $22.23. We like to see that Oppenheimer upgraded the stock to outperform after listening to the conference call. They were impressed that earnings beat estimates and they believe HRB will continue its focus on cost cutting. The analysts mentioned, "HRB just completed its best tax season this decade and is well positioned to perpetuate its momentum into the FY09 tax season via its competitively differentiated Emerald Advance Line." They feel the stock is undervalued and lifted their price target to $27.

The Omaha-based maker of Chef Boyardee and Slim Jim announced a $900 million accelerated buyback plan. To repurchase the shares, the company will pay Merrill and BAC each $450 million to buy roughly 33 million shares. ConAgra will finance the repurchases with proceeds from the sale of its commodities trading business. The consumer brands giant recently reported solid fourth quarter earnings. Net income jumped 5% to $201 million, or 41 cents a share, from $192 million, or 39 cents a share in the same period last year. Revenue grew to $3.08 billion, an increase of 15.2%. Citigroup analysts reiterated their buy rating on ConAgra and set the price target at $32. The analysts said, "We recently met with ConAgra management and walked away feeling positive as CAG's Consumer Foods division is expected to show significant improvement in F09 (from current macro-economic trends in the U.S. which are driving consumers out of restaurants and into the grocery store)." It was also good to see that ConAgra insiders are buying shares hand over fist. CEO Gary Rodkin bought 10,275 shares, along with the executive vice president, Robert Sharpe, who bought 12,000 shares. In total, five company directors bought 33,200 shares worth over $647,000 on July 3rd. The purchases were made just days after ConAgra stock fell to a 52-week low.

The Winona, Minn.-based maker of industrial and construction supplies said its board approved the repurchase of up to 1 million shares of common stock. This new repurchase will be in additional to its previous buyback plan, bringing the total repurchase amount up to 1,800,000 shares. The company has about 149 million shares outstanding. On July 11th, Fastenal reported great second quarter earnings with net income surging 26% to $76.2 million, or 51 cents a share, from $60.3 million, or 40 cents a share in the same period last year. Revenue rose from $519.7 million to $604.2 million, a 16% jump. In the first half of 2008 the company opened 112 new stores bringing the total to 2,272 stores. At its existing stores, sales increased at an average of 8%. On top of the impressive quarter, it’s also good to see analysts at Robert W. Baird upgraded the stock to outperform from neutral. The analysts mentioned that second quarter sales and EPS beat their estimates and they foresee impressive sales growth in 2009 coming from the impact of its "Pathway to Profit" program. They also lifted the price target from $55 to $58.