Harte-Hanks Announces Stock Repurchase Program worth $20M

Harte-Hanks Inc. HHS unveiled a new stock repurchase program under which it plans to buy back up to $20 million of its common stock. The buyback plan is part of the company's strategy to deploy its capital resources in a balanced approach.

Under the repurchase program, Harte-Hanks plans to purchase shares through open-market transactions. The stock buyback will be funded from available working capital funds and the repurchased stock will be held in treasury.

Since 1997, the worldwide direct and targeted marketing company has repurchased over $1 billion worth of shares from stakeholders. Harte-Hanks intends to continue enhancing shareholders' wealth by returning cash to them through regular dividends, in addition to share repurchases. The company recently announced a regular quarterly dividend of 8.5 cents per share, payable on Sep 15, 2014.

The marketing services company has lately been struggling to achieve sustained revenue growth. Harte-Hanks reported a scant year-over-year increase in its second-quarter revenues, with Trillium Software sales displaying fair growth. However, second-quarter earnings per share from continuing operations declined 18.2% over the prior-year quarter.

Harte-Hanks, while aiming to achieve sustainable, consistent long-term revenue growth, is at the same time intent on improving its operational efficiency via cost-reduction initiatives. It is also re-aligning its portfolio in order to keep up with the dynamic demand scenario.

The company is focused on achieving revenues of $1 billion in five years, through both organic growth strategies and acquisitions. It is planning to invest around $200 million for acquisitions contemplated in the next 2–3 years.

Harte-Hanks presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the consumer discretionary sector include Electronic Arts Inc. EA, Royal Caribbean Cruises Ltd. RCL and 500.com Limited (WBAI). All these stocks sport a Zacks Rank #1 (Strong Buy).