Alliance Data Systems (ADS) Updates FY18 Earnings Guidance

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Alliance Data Systems (NYSE:ADS) issued an update on its FY18 earnings guidance on Thursday morning. The company provided earnings per share guidance of $22.50-23.00 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $22.58. The company issued revenue guidance of $8.2 billion, compared to the consensus revenue estimate of $8.18 billion.

Alliance Data Systems stock opened at $233.08 on Friday. Alliance Data Systems has a 52 week low of $192.02 and a 52 week high of $278.33. The company has a current ratio of 23.57, a quick ratio of 2.11 and a debt-to-equity ratio of 11.38. The company has a market cap of $12.59 billion, a price-to-earnings ratio of 12.75, a PEG ratio of 0.81 and a beta of 1.78.

Alliance Data Systems (NYSE:ADS) last posted its earnings results on Thursday, July 19th. The business services provider reported $5.01 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $4.64 by $0.37. Alliance Data Systems had a net margin of 11.35% and a return on equity of 59.18%. The firm had revenue of $1.97 billion for the quarter, compared to analysts’ expectations of $1.93 billion. During the same quarter last year, the firm earned $3.84 EPS. The company’s quarterly revenue was up 8.1% compared to the same quarter last year. sell-side analysts expect that Alliance Data Systems will post 21.45 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 19th. Shareholders of record on Tuesday, August 14th will be given a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 0.98%. Alliance Data Systems’s dividend payout ratio is currently 12.47%.

Several equities analysts have commented on ADS shares. ValuEngine raised shares of Alliance Data Systems from a strong sell rating to a sell rating in a research report on Wednesday, May 23rd. Credit Suisse Group lowered their price target on shares of Alliance Data Systems from $218.00 to $206.00 and set an underperform rating on the stock in a report on Friday, April 13th. Piper Jaffray Companies reaffirmed a buy rating and issued a $313.00 price target on shares of Alliance Data Systems in a report on Friday, April 6th. Robert W. Baird lowered their price target on shares of Alliance Data Systems from $250.00 to $242.00 and set a neutral rating on the stock in a report on Tuesday, April 17th. Finally, Oppenheimer raised shares of Alliance Data Systems from an underperform rating to a market perform rating and set a $227.00 price target on the stock in a report on Friday, April 20th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and eleven have assigned a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $264.25.

In other Alliance Data Systems news, insider Valueact Capital Master Fund, acquired 202,600 shares of Alliance Data Systems stock in a transaction that occurred on Wednesday, May 9th. The stock was acquired at an average cost of $201.80 per share, for a total transaction of $40,884,680.00. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Holdings L.P. Valueact acquired 125,000 shares of Alliance Data Systems stock in a transaction that occurred on Tuesday, May 8th. The stock was acquired at an average price of $201.27 per share, with a total value of $25,158,750.00. The disclosure for this purchase can be found here. Insiders purchased a total of 330,246 shares of company stock worth $66,585,860 in the last ninety days. 2.60% of the stock is currently owned by insiders.

About Alliance Data Systems

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. It operates through three segments: LoyaltyOne, Epsilon, and Card Services. The company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs.

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