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Alliance Data (ADS) Q1 Earnings Miss, Updates Guidance

Zacks Equity Research

Have you been eager to see how Alliance Data Systems Corporation ADS performed in the first 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 Miss

Alliance Data reported adjusted earnings per share of $3.55 per share, missing the Zacks Consensus Estimate of $3.76. Bottom line declined 13.4% year over year.

Alliance Data Systems Corporation Price and EPS Surprise

Alliance Data Systems Corporation Price and EPS Surprise | Alliance Data Systems Corporation Quote

Revenues Decline

Alliance Data generated total revenues of $1.3 billion, down 3% year over year. The downside was attributable to lower revenues from both its LoyaltyOne and Card Services segment.

How Was the Estimate Revision Trend?

You should note that the Zacks Consensus Estimate for Alliance Data remained unchanged prior to the earnings release. Nonetheless, Alliance Data has a modest earnings surprise history. The company surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 0.92%.

Key Stats to Note

•  Adjusted EBITDA (net of funding costs) decreased 9% year over year to $317 million.

•  AIR MILES’ reward miles issued increased 3% while AIR MILES’ reward miles redeemed decreased 8%.

•  For 2019, the company estimates revenues to be $5.84 billion, up 4% from 2018 and Core EPS of $18.47, down 4% from 2018.

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 see the 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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