Alliance Data's (ADS) Beats on Q4 Earnings, Tweaks View
Have you been eager to see how Alliance Data Systems Corporation 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
Alliance Data Systems Corporation Price and EPS Surprise | Alliance Data Systems Corporation Quote
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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