Alliance Data Systems Earnings Preview: Can This Streak Continue?

Alliance Data Systems (NYSE:ADS) will report earnings before markets open on Thursday, April 18th. Alliance Data Systems Corporation provides card services, loyalty and marketing solutions, payment processing, and business process outsourcing services. The Company provides such services to the retail, petroleum, utility, financial services, and hospitality markets.

Here is your Cheat Sheet to Alliance Data Systems Earnings:

Earnings Expectations: Analysts expect earnings of $2.51 per share on revenues of $1.05 billion. Currently, the company’s P/E ratio stands at 24.09.

Analyst Trends:

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 $2.3 to a profit $2.34. For the current year, the average estimate is a profit of $9.86, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Alliance Data Systems has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,025 1,964 2,791 3,173 3,641
Diluted EPS ($) 2.80 2.49 3.48 5.45 6.58

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 847.55 891.57 866.48 911.49 971.84
Diluted EPS ($) 1.10 1.86 1.63 1.84 1.25

Past Performance:
Alliance Data Systems has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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