Omnicell to buy back $50M in stock; plan may boost profit

MOUNTAIN VIEW—Omnicell Inc., which makes patient safety products, on Monday said it will buy back $50 million in stock over the next year.

The buyback is expected to add to earnings, the company said. In a statement, the company said the move reflects the belief that the stock is undervalued and does not reflect the "intrinsic value" of the company.

Last week, the Mountain View, Calif., company lowered its full-year profit and sales growth outlook, citing uncertainty about incoming orders.