Alliance Data Systems Co. (ADS) Expected to Announce Earnings of $4.68 Per Share

Analysts expect Alliance Data Systems Co. (NYSE:ADS) to post earnings of $4.68 per share for the current fiscal quarter, Zacks Investment Research reports. Eleven analysts have issued estimates for Alliance Data Systems’ earnings, with estimates ranging from $4.40 to $5.24. Alliance Data Systems posted earnings of $3.84 per share during the same quarter last year, which would suggest a positive year-over-year growth rate of 21.9%. The firm is scheduled to issue its next quarterly earnings results on Thursday, July 19th.

According to Zacks, analysts expect that Alliance Data Systems will report full year earnings of $22.54 per share for the current financial year, with EPS estimates ranging from $22.06 to $22.75. For the next financial year, analysts anticipate that the company will post earnings of $25.56 per share, with EPS estimates ranging from $24.30 to $26.46. Zacks’ EPS calculations are a mean average based on a survey of analysts that that provide coverage for Alliance Data Systems.

Alliance Data Systems (NYSE:ADS) last released its earnings results on Thursday, April 19th. The business services provider reported $4.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.98 by $0.46. Alliance Data Systems had a net margin of 10.44% and a return on equity of 61.30%. The company had revenue of $1.88 billion during the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter in the prior year, the firm earned $3.91 EPS. The company’s revenue was up .3% compared to the same quarter last year.

A number of research firms have recently weighed in on ADS. Piper Jaffray Companies restated a “buy” rating and set a $313.00 price target on shares of Alliance Data Systems in a report on Friday, April 6th. Oppenheimer set a $206.00 price target on shares of Alliance Data Systems and gave the company a “sell” rating in a report on Thursday, April 12th. JMP Securities cut their price target on shares of Alliance Data Systems from $310.00 to $270.00 and set a “positive” rating on the stock in a report on Thursday, April 12th. Wedbush cut their price target on shares of Alliance Data Systems from $252.00 to $230.00 and set a “neutral” rating on the stock in a report on Monday, April 2nd. They noted that the move was a valuation call. Finally, ValuEngine downgraded shares of Alliance Data Systems from a “sell” rating to a “strong sell” rating in a report on Friday, June 1st. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $266.22.

ADS stock traded down $0.27 during midday trading on Friday, reaching $236.40. The company had a trading volume of 19,037 shares, compared to its average volume of 497,602. Alliance Data Systems has a 1 year low of $192.02 and a 1 year high of $278.33. The company has a quick ratio of 2.11, a current ratio of 2.14 and a debt-to-equity ratio of 7.86. The company has a market cap of $12.99 billion, a price-to-earnings ratio of 12.95, a PEG ratio of 0.64 and a beta of 1.76.

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 19th. Investors of record on Monday, May 14th were paid a $0.57 dividend. The ex-dividend date was Friday, May 11th. This represents a $2.28 dividend on an annualized basis and a yield of 0.96%. Alliance Data Systems’s payout ratio is presently 12.47%.

In other news, insider Valueact Capital Master Fund, bought 2,646 shares of the stock in a transaction that occurred on Tuesday, May 15th. The shares were acquired at an average cost of $205.00 per share, for a total transaction of $542,430.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Holdings L.P. Valueact bought 125,000 shares of the stock in a transaction that occurred on Tuesday, May 8th. The stock was purchased at an average price of $201.27 per share, for a total transaction 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 over the last quarter. 2.60% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of ADS. Centaurus Financial Inc. acquired a new stake in Alliance Data Systems in the 1st quarter worth $106,000. Tower Research Capital LLC TRC acquired a new stake in Alliance Data Systems in the 4th quarter worth $152,000. Dynamic Advisor Solutions LLC acquired a new stake in Alliance Data Systems in the 1st quarter worth $208,000. Smithfield Trust Co. grew its position in Alliance Data Systems by 64.0% in the 1st quarter. Smithfield Trust Co. now owns 989 shares of the business services provider’s stock worth $210,000 after purchasing an additional 386 shares during the last quarter. Finally, Staley Capital Advisers Inc. acquired a new stake in Alliance Data Systems in the 4th quarter worth $211,000. Institutional investors own 93.84% of the company’s stock.

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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