Back to top

Analyst Blog

Zacks Equity Research

Alliance Data's October Receivables in Card Business Up

WEX MA ADS VNTV

Trades from $3

Alliance Data Systems Corporation (ADS - Free Report) reported an increase in average receivables in its Card Services segment for the month of Oct 2016.

The Plano, TX-based company recorded average receivables of $14.60 billion for the month, up 22% year over year. For the 10-month period ended Oct 2016, average receivables increased 24% year over year to $13.77 billion.

Net charge-offs came in at $66.99 million for the reported month, while for the ten-month period ended Oct 2016, net charge-offs were $580.23 million.

As a percentage of average receivables, net charge-offs for the month and the ten-month period ended Oct 2016, was 5.5% and 5.1%, respectively, compared to 5.0% and 4.5%, respectively, in the prior-year period. The company remains focused on its full-year 2016 guidance of a 5.0% principal loss rate.

In the release, Alliance Data stated that the net loss rate for the month is in line with maintaining its full-year guidance of $7.2 billion in total revenue and core EPS of $16.90. This reflects year-over-year increases of 11% and 12%, respectively.

Currently, Alliance Data carries a Zacks #3 (Hold).

Stocks to Consider

Mastercard Incorporated (MA - Free Report) : The Zacks Consensus Estimate for 2016 moved up 2.5% to $3.74 per share for 2016 and 1.7% to $4.30 for 2017, over the last 30 days. The company sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Vantiv, Inc. (VNTV - Free Report) : Over the last 30 days, the Zacks Consensus Estimate for the current year increased 1.2% to $2.57 per share and inched up 1% to $2.93 for 2017. The company carries a Zacks Rank #2.

WEX Inc. (WEX - Free Report) : The Zacks Consensus Estimate for 2016 moved up 5.5% to $4.24 per share for 2016 and 2.6% to $5.09 for 2017, over the last 30 days. The company carries a Zacks Rank #2.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

WEX INC (WEX) - free report >>

MASTERCARD INC (MA) - free report >>

ALLIANCE DATA (ADS) - free report >>

VANTIV INC-A (VNTV) - free report >>