Alliance Data Systems Earnings: Here’s Why Investors are Buying Shares Now

Alliance Data Systems Corporation (NYSE:ADS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.32%.

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Alliance Data Systems Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.14% to $2.55 in the quarter versus EPS of $2.38 in the year-earlier quarter.

Revenue: Rose 18.11% to $1.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alliance Data Systems Corporation reported adjusted EPS income of $2.55 per share. By that measure, the company beat the mean analyst estimate of $2.51. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Ed Heffernan, president and chief executive officer, commented, “This quarter we achieved a milestone by exceeding $1 billion in quarterly revenue for the first time. Reflecting back when Alliance Data went public in 2001, our total annual revenue at the time was about $750 million, which shows pretty remarkable growth over the last 12 years. Looking forward, the bar for growth has been set high, but we remain confident in our ability to achieve organic growth of 2 3 times that of GDP.”

Key Stats (on next page)…

Revenue increased 8.35% from $971.84 million in the previous quarter. EPS increased 38.59% from $1.84 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.29 to a profit $2.34. For the current year, the average estimate has moved up from a profit of $9.76 to a profit of $9.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)