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 three of the last four quarters, making for an average surprise of 3.3%.
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. (YYou can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here).
How was the Bottom Line?
Alliance Data beats on earnings again. Our consensus called for EPS of $4.17 per share, and the company reported EPS of $4.54 per share.
How was the Top Line?
Revenue of $1.9 billion beat the Zacks Consensus Estimate of $1.8 billion and improved 19% year over year.
Key Stats to Note
• Adjusted EBITDA increased 13% year over year to $512 million.
• AIR MILES’ reward miles issued increased 6% while reward miles redeemed increased 74%.
• Raises 2016 core EPS to $16.90 on increased expected revenues of $7.2 billion.
• Projects 2017 revenues and earnings growth of 10%.
• Initiates dividend. The board of directors approved quarterly dividend of 52 cents.
Check back later for our full write up on this ADS earnings report later!
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Alliance Data (ADS) Q3 Earnings Beat, Initiates Dividend
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 three of the last four quarters, making for an average surprise of 3.3%.
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. (YYou can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here).
How was the Bottom Line?
Alliance Data beats on earnings again. Our consensus called for EPS of $4.17 per share, and the company reported EPS of $4.54 per share.
ALLIANCE DATA Price and EPS Surprise
ALLIANCE DATA Price and EPS Surprise | ALLIANCE DATA Quote
How was the Top Line?
Revenue of $1.9 billion beat the Zacks Consensus Estimate of $1.8 billion and improved 19% year over year.
Key Stats to Note
• Adjusted EBITDA increased 13% year over year to $512 million.
• AIR MILES’ reward miles issued increased 6% while reward miles redeemed increased 74%.
• Raises 2016 core EPS to $16.90 on increased expected revenues of $7.2 billion.
• Projects 2017 revenues and earnings growth of 10%.
• Initiates dividend. The board of directors approved quarterly dividend of 52 cents.
Check back later for our full write up on this ADS earnings report later!
Confidential from ZacksBeyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>