MENLO PARK, Calif. - Exponent , Inc. (NASDAQ:EXPO), a multidisciplinary engineering and scientific consulting firm, has announced an increase in its quarterly dividend and an expansion of its stock repurchase program. The company's Board of Directors has approved a dividend increase from $0.26 to $0.28 per share of common stock, to be distributed on March 22, 2024, to stockholders on record as of March 8, 2024.
This increment marks the 11th consecutive year that Exponent has raised its regular quarterly cash dividend. In a statement by Dr. Catherine Corrigan, President and CEO of Exponent. In the previous year, Exponent returned $78.2 million to shareholders, allocating $54.0 million to dividends and $24.2 million to stock repurchases.
Alongside the dividend rise, Exponent's Board has also authorized an additional $61.6 million towards its stock repurchase program, bringing the total authorization to $100 million. This move is indicative of the Board's confidence in the company's long-term growth trajectory.
Exponent reported ending 2023 with $187.2 million in cash and cash equivalents. The firm employs over 950 consultants across more than 90 technical disciplines.
The information in this article is based on a press release.
InvestingPro Insights
Exponent, Inc. (NASDAQ:EXPO) continues to demonstrate its financial resilience and commitment to shareholder returns, as evidenced by its recent dividend increase and stock repurchase program expansion. InvestingPro data underscores the company's robust fiscal health, with a market capitalization of $4.55 billion and a solid gross profit margin of 36.42% over the last twelve months as of Q3 2023. This is further supported by the fact that Exponent holds more cash than debt, providing it with a cushion to navigate economic uncertainties and invest in growth opportunities.
Investors considering Exponent's stock will note the company's high valuation multiples, with a Price/Earnings (P/E) ratio of 45.12 and a Price/Book ratio of 12.87 as of the last twelve months ending Q3 2023. While these multiples suggest a premium market valuation, they may reflect the market's confidence in Exponent's future earnings potential and its track record of profitability. Indeed, the company has been profitable over the last twelve months and analysts predict profitability for the current year as well.
For those looking to delve deeper into Exponent's financials and future prospects, InvestingPro offers additional insights. With an InvestingPro subscription, now available at a New Year sale discount of up to 50%, subscribers can access a wider array of InvestingPro Tips. Use coupon code "SFY24" to get an additional 10% off a 2-year InvestingPro+ subscription, or "SFY241" to get an additional 10% off a 1-year InvestingPro+ subscription. Among these tips, investors will find that Exponent has raised its dividend for 11 consecutive years and maintains a strong return over the last three months, with a price total return of 25.06%. The company also boasts a dividend yield of 1.18% as of the current year, reflecting its stable income-generating capabilities. There are 14 additional InvestingPro Tips available that can provide investors with a comprehensive understanding of Exponent's financial health and market position.
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