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Alliance Data (ADS) Q1 Estimates In Line, Revenues Beat

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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 decent history when it comes to earnings as the stock has beaten estimates in two of the last four quarters, making for an average surprise of about 2.1%.

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. (You can see the complete list of today’s Zacks #1 Rank stocks here.)

How was the Bottom Line?

Alliance Data meets estimates. The company reported operating EPS of $3.64 per share, in line with the Zacks Consensus Estimate.

How was the Top Line?

Revenue of $1.9 billion beat the Zacks Consensus Estimate of $1.8 billion and improved 12% year over year.
    
Key Stats to Note


•   Adjusted EBITDA increased 2% year over year to $501 million.
•  Both AIR MILES’ reward miles issued and redeemed decreased 4% each.
•   Projects 2017 core earnings to be $18.50 per share on revenues of $7.7 billion.

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

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