Zacks: Brokerages Expect Alliance Data (ADS) Will Announce Quarterly Sales of $1.93 Billion

Wall Street analysts expect that Alliance Data (NYSE:ADS) will report sales of $1.93 billion for the current quarter, according to Zacks Investment Research. Eleven analysts have provided estimates for Alliance Data’s earnings, with estimates ranging from $1.89 billion to $1.97 billion. Alliance Data posted sales of $1.82 billion in the same quarter last year, which would indicate a positive year-over-year growth rate of 6%. The business is scheduled to announce its next quarterly earnings results on Thursday, July 19th.

According to Zacks, analysts expect that Alliance Data will report full-year sales of $8.17 billion for the current fiscal year, with estimates ranging from $8.04 billion to $8.28 billion. For the next fiscal year, analysts expect that the company will report sales of $8.95 billion per share, with estimates ranging from $8.63 billion to $9.15 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side research firms that that provide coverage for Alliance Data.

Alliance Data (NYSE:ADS) last announced its quarterly earnings data on Thursday, April 19th. The business services provider reported $4.44 EPS for the quarter, topping the consensus estimate of $3.98 by $0.46. The company had revenue of $1.88 billion during the quarter, compared to the consensus estimate of $1.93 billion. Alliance Data had a net margin of 10.44% and a return on equity of 61.30%. The company’s quarterly revenue was up .3% on a year-over-year basis. During the same quarter last year, the firm posted $3.91 EPS.

Several analysts have recently commented on ADS shares. Edward Jones raised shares of Alliance Data from a “hold” rating to a “buy” rating in a research report on Monday, February 26th. Zacks Investment Research downgraded shares of Alliance Data from a “buy” rating to a “hold” rating in a research report on Tuesday, March 6th. Credit Suisse Group reaffirmed a “hold” rating and set a $218.00 price objective on shares of Alliance Data in a research report on Wednesday, March 14th. Buckingham Research started coverage on shares of Alliance Data in a research report on Wednesday, March 14th. They set a “neutral” rating and a $250.00 price objective for the company. Finally, UBS Group started coverage on shares of Alliance Data in a research report on Tuesday, March 27th. They set a “neutral” rating and a $238.00 price objective for the company. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and eleven have assigned a buy rating to the company. Alliance Data has an average rating of “Hold” and a consensus price target of $265.83.

In related news, insider Valueact Capital Master Fund, acquired 202,600 shares of the company’s stock in a transaction on Wednesday, May 9th. The shares were 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 document filed with the SEC, which is available at this link. Also, Director Holdings L.P. Valueact acquired 125,000 shares of the company’s stock in a transaction on Tuesday, May 8th. The shares were bought 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. In the last three months, insiders purchased 330,246 shares of company stock valued at $66,585,860. 2.60% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of ADS. Creative Planning lifted its stake in Alliance Data by 28.5% during the 4th quarter. Creative Planning now owns 1,823 shares of the business services provider’s stock valued at $462,000 after acquiring an additional 404 shares in the last quarter. Schwab Charles Investment Management Inc. lifted its stake in Alliance Data by 25.8% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 274,310 shares of the business services provider’s stock valued at $69,533,000 after acquiring an additional 56,239 shares in the last quarter. SG Americas Securities LLC lifted its stake in Alliance Data by 31.1% during the 4th quarter. SG Americas Securities LLC now owns 8,483 shares of the business services provider’s stock valued at $2,150,000 after acquiring an additional 2,011 shares in the last quarter. Commerzbank Aktiengesellschaft FI bought a new position in Alliance Data during the 4th quarter valued at $265,000. Finally, Meag Munich Ergo Kapitalanlagegesellschaft MBH bought a new position in Alliance Data during the 4th quarter valued at $585,000. Institutional investors and hedge funds own 95.22% of the company’s stock.

Shares of ADS stock opened at $210.82 on Friday. The company has a market cap of $11.63 billion, a PE ratio of 11.53, a P/E/G ratio of 0.57 and a beta of 1.76. Alliance Data has a 52 week low of $192.02 and a 52 week high of $278.33. The company has a debt-to-equity ratio of 7.86, a current ratio of 2.14 and a quick ratio of 2.11.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 19th. Investors of record on Monday, May 14th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.08%. The ex-dividend date is Friday, May 11th. Alliance Data’s payout ratio is currently 12.47%.

About Alliance Data

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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