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Alliance Data (ADS) Q2 Earnings Beat, Guidance Raised

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Alliance Data Systems Corporation is a premier private label credit card processing firm for mid-market specialty retail stores in the U.S. In Canada, it owns and operates the premier coalition loyalty-marketing program (AIR MILES). It operates three businesses- Card Services, Epsilon and Loyaltyone.
    
The company has an impressive inorganic growth story. Alliance Data eyes acquisitions that are a strategic fit for the company, helping it to clock strong growth rates in its business.

Meanwhile, sustained solid operational results have helped the company strengthen its financial flexibility and encouraged shareholder friendly moves.  

Alliance Data does have a solid history when it comes to earnings as the stock has beaten estimates in the last four quarters, making for an average surprise of 2.59%.

Currently, Alliance Data has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

How was the Bottom Line?

Alliance Data beats on earnings again. Our consensus called for EPS of $3.32 per share, and the company reported EPS of $3.44 per share.
 

ALLIANCE DATA Price and EPS Surprise

ALLIANCE DATA Price and EPS Surprise | ALLIANCE DATA Quote

How was the Top Line?

Revenue of $1.75 billion beat the Zacks Consensus Estimate of $1.6 billion and improved 17% year over year.
    
Key Stats to Note


•    Adjusted EBITDA increased 7% year over year to $422 million.
•    AIR MILES’ reward miles issued decreased 3% while reward miles redeemed increased 8%.
•    Guidance for the third quarter of 2016 is $1.78 billion in revenue and $4.42 in core EPS.
•    Raises 2016 core EPS to $16.85 on increased expected revenues of $7.15 billion.

Check back later for our full write up on this ADS earnings report later!

 

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