Alliance Data Systems Corporation recently announced that its average receivables for Dec 2016 have increased 22% year over year to $16.1 billion. For full-year 2016, average receivables grew 24% year over year to $14.1 billion.
Net charge-offs came in at $71.15 million for the reported month, while for 2016 the metric was $723 million.
As a percentage of average receivables, net charge-offs for December and full-year 2016 was 5.3% and 5.1%, respectively. The company had reported 4.1% and 4.5%, respectively, in the prior-year period.
The financial transaction service provider’s net loss rate for the month was in line with the full-year guidance of $7.2 billion for total revenue and $16.90 for core earnings per share (EPS). This reflects year-over-year increase of 11% and 12%, respectively.
The Alliance Data stock outperformed the Zacks categorized Financial Transaction Services industry in the last three months. Shares of Alliance Data gained 7.84%, while the industry registered an increase of 1.85%. Solid performance across its segments should help the stock retain momentum.
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Alliance Data is set to announce its fourth-quarter results on Jan 26, before the opening bell. Our proven model shows that the company is likely to beat estimates this earnings season as it has the right combination of a Zacks Rank #3 (Hold) and positive Earnings ESP. The company delivered positive surprise in three of the last four quarters. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $4.41 per share on revenues of $1.95 billion. Alliance Data projects 2016 core EPS to be $16.90 on revenues of $7.20 billion.
Stocks to Consider
Some better-ranked stocks from the finance sector are Fiserv, Inc. , Vantiv, Inc. and Alleghany Corporation .
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the U.S. and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%. The company sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here..
Fiserv, a provider of financial services technology worldwide, delivered positive surprises in two of the last four quarters with an average beat of 1.2%. The stock carries Zacks Rank #2 (Buy).
Vantiv, a provider of electronic payment processing services to merchants and financial institutions in the U.S., delivered positive surprises in all the last four quarters with an average beat of 4.53%. The company carries a Zacks Rank #2
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Alliance Data's (ADS) Card Business Improves in December
Alliance Data Systems Corporation recently announced that its average receivables for Dec 2016 have increased 22% year over year to $16.1 billion. For full-year 2016, average receivables grew 24% year over year to $14.1 billion.
Net charge-offs came in at $71.15 million for the reported month, while for 2016 the metric was $723 million.
As a percentage of average receivables, net charge-offs for December and full-year 2016 was 5.3% and 5.1%, respectively. The company had reported 4.1% and 4.5%, respectively, in the prior-year period.
The financial transaction service provider’s net loss rate for the month was in line with the full-year guidance of $7.2 billion for total revenue and $16.90 for core earnings per share (EPS). This reflects year-over-year increase of 11% and 12%, respectively.
The Alliance Data stock outperformed the Zacks categorized Financial Transaction Services industry in the last three months. Shares of Alliance Data gained 7.84%, while the industry registered an increase of 1.85%. Solid performance across its segments should help the stock retain momentum.
Alliance Data is set to announce its fourth-quarter results on Jan 26, before the opening bell. Our proven model shows that the company is likely to beat estimates this earnings season as it has the right combination of a Zacks Rank #3 (Hold) and positive Earnings ESP. The company delivered positive surprise in three of the last four quarters. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $4.41 per share on revenues of $1.95 billion. Alliance Data projects 2016 core EPS to be $16.90 on revenues of $7.20 billion.
Stocks to Consider
Some better-ranked stocks from the finance sector are Fiserv, Inc. , Vantiv, Inc. and Alleghany Corporation .
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the U.S. and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%. The company sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here..
Fiserv, a provider of financial services technology worldwide, delivered positive surprises in two of the last four quarters with an average beat of 1.2%. The stock carries Zacks Rank #2 (Buy).
Vantiv, a provider of electronic payment processing services to merchants and financial institutions in the U.S., delivered positive surprises in all the last four quarters with an average beat of 4.53%. The company carries a Zacks Rank #2
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>