Free Post Earnings Research Report: Alliance Data’s Revenue Jumped 15%; Core EPS Surged 34%

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LONDON, UK / ACCESSWIRE / February 02, 2018 / Active-Investors.com has just released a free earnings report on Alliance Data Systems Corp. (NYSE: ADS) (“Alliance Data”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ADS. Alliance Data Systems reported its fourth quarter and fiscal 2017 operating and financial results on January 25, 2018. The global provider of data-driven marketing and loyalty solutions topped earnings expectations and updated guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Alliance Data Systems most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Alliance Data's revenue advanced 15% to $2.11 billion for the fourth quarter of 2017 compared to revenue of $1.83 billion in Q4 2016. The Company stated that Hurricanes Harvey and Irma, which prompted Alliance Data to provide a two-month leniency period for cardholders in FEMA-designated "individual assistance" disaster areas, reduced revenue by approximately $40 million for the reported quarter. Alliance Data's revenue numbers missed analysts' estimates of $2.15 billion.

For full year 2017, Alliance Data's revenue increased 8% to $7.72 billion compared to revenue of $7.14 billion in FY16.

During Q4 2017, Alliance Data's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 6% to $598 million on a y-o-y basis compared to $566 million in Q4 2016. The Company's adjusted EBITDA, net of funding costs and non-controlling interest, grew 1% to $5514 million on a y-o-y basis for the reported quarter.

For Q4 2017, Alliance Data reported earnings of $271 million, or $4.88 per diluted share, compared to net income of $11 million, or $0.18 per diluted share, for Q4 2016. The Company stated that the new federal corporate tax rate of 21% necessitated the re-valuation of certain deferred tax assets and liabilities previously established at higher tax rates. Since Alliance Data was in a net deferred tax liability position, the adjustment reduced the provision for income taxes by $65 million. The Company's core earnings advanced 34% to $6.26 for the reported quarter, beating Wall Street's estimates of $5.0 per share.

For FY17, Alliance Data's earnings totaled $789 million, or $14.10 per diluted share, compared to earnings of $518 million, or $7.34 per diluted share, in FY16. The Company's FY17 core earnings increased 14% to $19.35 per share.

Alliance Data's Segment Review

During Q4 2017, the LoyaltyOne segment's revenue soared 56% to $385 million on a y-o-y basis, while adjusted EBITDA increased 9% to $80 million. Alliance Data's AIR MILES and BrandLoyalty revenues were $193 million and $192 million, respectively, for Q4 2017. AIR MILES reward miles issued decreased 5% on a y-o-y basis for the reported quarter, due to reduced promotional activity.

For Q4 2017, the Epsilon division's revenue advanced 7% to $640 million on a y-o-y basis. The Auto and CRM offerings were the primary revenue drivers for the reported quarter, both notching double-digit growth. Epsilon's adjusted EBITDA decreased 2% to $159 million. The decline in adjusted EBITDA was attributed to $13 million of additional incentive compensation compared to Q4 2016.

The Card Services segment's revenue advanced 10% to $1.09 billion on a y-o-y basis and adjusted EBITDA, net of funding costs and non-controlling interest, increased 4% to $311 million.

Dividend Announcement

On January 25, 2018, Alliance Data announced that its Board of Directors declared a quarterly cash dividend of $0.57 per share on its common stock, payable on March 20, 2018, to stockholders of record at the close of business on February 14, 2018.

Outlook

For full year 2018, Alliance Data is forecasting revenue of $8.35 billion, representing an 8% increase on a y-o-y basis. The Company reduced its original guidance of $8.7 billion by approximately $350 million accounting reclassification for AIR MILES under the new revenue recognition standard, which went into effect January 01, 2018. For FY18, Alliance Data is projecting Core EPS of $22.50 to $23.00, representing a 16% to 19% growth over FY17.

Stock Performance Snapshot

February 01, 2018 - At Thursday's closing bell, Alliance Data Systems' stock slightly rose 0.18%, ending the trading session at $257.11.

Volume traded for the day: 262.54 thousand shares.

Stock performance in the last month – up 0.70%; previous three-month period – up 14.92%; past twelve-month period – up 11.60%; and year-to-date – up 1.43%

After yesterday's close, Alliance Data Systems' market cap was at $14.24 billion.

Price to Earnings (P/E) ratio was at 27.27.

The stock has a dividend yield of 0.89%.

The stock is part of the Services sector, categorized under the Business Services industry.

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