Plexus Corp. (PLXS Quick QuotePLXS - Free Report) announced its plans to initiate a new $150 million share repurchase program while reaffirming its third quarter fiscal 2016 guidance yesterday.

For the third quarter of fiscal 2016, the company continues to expect revenues in the range of $640 million - $670 million while non GAAP earnings are still expected within 73 to 81 cents per share. 

In addition, the company approved a new share repurchase program stating that “Over the past 10 years, we have reduced the number of our outstanding shares by over 25 percent. The new share repurchase program reflects our continued commitment to maximize shareholder returns through a disciplined approach of returning cash to shareholders.”

The new program is expected to start from fiscal 2017 onwards. The company’s strong cash balance and the ongoing credit facility (which will be extended in fiscal 2017) are intended to cushion the expense. Plexus had exited the second quarter with cash & cash equivalents worth $409.8 million while its long-term debt (including capital lease obligations) was approximately $259.6 million.

Plexus has been returning cash to shareholders through share repurchase programs over the last three years. In addition, in the last quarter, the company had increased its free cash flow guidance by $10 million for fiscal 2016.

Buoyed by positive investor sentiments, the company’s shares rose 1.64% in yesterday’s trading session to close at $44.66.

Currently, Plexus has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader tech sector include Internap Corporation , Atlassian Corporation Plc (TEAM Quick QuoteTEAM - Free Report) and Castlight Health, Inc. (CSLT Quick QuoteCSLT - Free Report) , each carrying a Zacks Rank #2 (Buy).

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