Radware Upsizes Share Buyback To $80M Following Weak Q4 EPS

Radware Ltd. (NASDAQ: RDWR) upsized its share buyback plan to $80 million, including the remaining share repurchase plan for 2020 and the new 2021 plan. The buyback plan will expire on December 31, 2021.
The company bought back shares worth $45 million in 2020.
Radware reported a 2.5% year-on-year revenue growth to $69 million in the fourth quarter of FY20, just a week back, exceeding analyst estimates of $67.7 million. The growth was fueled by record cloud and subscription annual recurring revenue (ARR) growth.
However, EPS plummeted 8.7% to $0.21 compared to consensus estimates of $0.22.
Closing cash stood at $54.8 million, and operating cash flow rose 306% to $16.1 million.
Radware's stock had underperformed the broader tech sector, growing 14.7% in the last year and just 0.11% during the previous six months. Based on today's price, the stock buyback could see up to 7% of the company's stock retired in less than a year.
Price Action: RDWR shares are trading higher by 4.75% at $27.44 on the last check Tuesday.