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Alliance Data's (ADS) Beats On Q4 Earnings, Tweaks View

By Zacks Investment ResearchStock MarketsJan 24, 2018 09:12PM ET
www.investing.com/analysis/alliance-datas-ads-beats-on-q4-earnings-tweaks-view-200283484
Alliance Data's (ADS) Beats On Q4 Earnings, Tweaks View
By Zacks Investment Research   |  Jan 24, 2018 09:12PM ET
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Have you been eager to see how Alliance Data Systems Corporation (NYSE:ADS) performed in the fourth quarter in comparison with the market expectations? Let’s quickly scan through the key facts from this OH-based property and casualty insurer’s earnings release this morning

An Earnings Beat

Alliance Data reported adjusted earnings per share of $5.24 per share, beating the Zacks Consensus Estimate of $5.00. Earnings surged 15% year over year.

Alliance Data Systems Corporation Price and EPS Surprise

Revenues Miss

Alliance Data generated revenues of $2.11 billion, missing the Zacks Consensus Estimate of $2.15 billion. Top–line increased 55% year over year.

How Was the Estimate Revision Trend?

You should note that there was no earnings momentum for Alliance Data prior to the earnings release. Alliance Data has a solid earnings surprise history. The company surpassed the Zacks Consensus Estimate in the last four quarters with an average beat of 3.9%.

Key Stats to Note

• Adjusted EBITDA increased 5.6% year over year to $597.5 million.
• AIR MILES’ reward miles issued decreased 5% while AIR MILES’ reward miles redeemed plummeted 56%.
• For 2018, the company expects core EPS between Core EPS of $22.50 to $23.00, up 16% to 19% over 2017. Revenue of $8.35 billion lowered from $8.7 billion guided earlier. Top–line reflects 8% increase over 2017.
• Dividend raised by 10% to 57 cents.

What Zacks Rank Says

The company carries Zacks Rank #3 (Hold)). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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Alliance Data Systems Corporation (ADS): Free Stock Analysis Report

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Alliance Data's (ADS) Beats On Q4 Earnings, Tweaks View
 

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Alliance Data's (ADS) Beats On Q4 Earnings, Tweaks View

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