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Alliance Data's (ADS) Earnings Top Q3 Estimates, Keeps View

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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 United States. 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.

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 beats estimates. The company reported operating EPS of $5.35 per share, surpassing the Zacks Consensus Estimate of $4.80.

How was the Top Line?

Revenue of $1.91 billion marginally missed the Zacks Consensus Estimate of $1.98 billion but improved 1% year over year.

Alliance Data Systems Corporation Price and EPS Surprise

Key Stats to Note

•   Adjusted EBITDA increased 10% year over year to $622 million.
•  AIR MILES’ reward miles issued decreased 7% while AIR MILES’ reward miles redeemed declined 43%.
•   Affirms 2017 core earnings at $18.10 per share and revenues at $7.8 billion.
•    For 2018, the company expects core EPS of $21.50 on revenues of $8.7 billion in revenue.

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

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