Alliance Data (ADS) to Report Q4 Earnings: A Beat in Store?

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We expect Alliance Data Systems Corporation to beat earnings expectations when it reports its fourth-quarter and full-year 2016 results on Jan 26.

Why a Likely Positive Surprise?

Our proven model shows that Alliance Data has the right combination of two key ingredients to beat earnings.

Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.23%. This is a major indicator of a likely positive earnings surprise for the company.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank #3 (Hold): Alliance Data carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings.

The combination of Alliance Data’s Zacks Rank #3 and ESP of +0.23% makes us confident of an earnings beat on Jan 26. The Zacks Consensus Estimate of $4.41 for the quarter reflects a year-over-year increase of about 14%.

Notably, the company has reported a positive earnings surprise in three of the trailing four quarters.

Alliance Data Systems Corporation Price and EPS Surprise

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