The Retail Service business of Alliance Data Systems Corp (ADS - Free Report) inked a long-term deal to provide private label credit card services for El Dorado Furniture.
U.S.-based furniture retailer El Dorado operates 12 stores in Dade, Broward and Palm Beach counties in southern Florida.
As per the agreement, Alliance Data will provide credit and marketing services for the El Dorado Furniture Credit Card program. It will also provide customers with customized financing and payment alternative. Additionally, Alliance Data will be providing mobile marketing solutions to El Dorado in order to promote mobile technology at point-of-sale.
To date, this is the third long-term agreement in the second quarter of 2013 under Alliance’s Private Label Services and Credit segment. The company has also signed an agreement under its LoyaltyOne segment.
The Private Label Services and Credit segment has continuously delivered solid numbers. We believe that winning new deals along with the renewal of the existing ones will further enhance its performance. The segment’s revenues in the first quarter of 2013 improved 22% year over year, while operating income surged increased 13.3%.
Alliance Data expects core earnings per share to be at $9.75, up 12% year over year. The Zacks Consensus Estimate for 2013 is currently pegged at $9.39, lower than the company’s guidance. It also represents a year-over-year improvement of 14.6%.
Alliance Data currently carries a Zacks Rank #3 (Hold). Among other financial transaction service providers, Vantiv, Inc. -- Zacks Rank #1 (Strong Buy), Visa Inc. (V - Free Report) -- Zacks Rank #2 (Buy) and Fidelity National Information Services, Inc. (FIS - Free Report) -- Zacks Rank #2 (Buy), appear impressive and are worth noting.