Alliance Data Systems (NYSE:ADS) Updates FY19 Earnings Guidance

Alliance Data Systems (NYSE:ADS) issued an update on its FY19 earnings guidance on Thursday morning. The company provided earnings per share guidance of $19.50-19.75 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $19.10. The company issued revenue guidance of $5.8 billion, compared to the consensus revenue estimate of $5.80 billion.Alliance Data Systems also updated its FY 2019 guidance to $19.50-19.75 EPS.

Shares of Alliance Data Systems stock opened at $151.56 on Friday. The firm’s 50-day simple moving average is $142.46. The company has a quick ratio of 2.53, a current ratio of 1.72 and a debt-to-equity ratio of 5.38. The firm has a market capitalization of $8.28 billion, a P/E ratio of 7.03, a PEG ratio of 0.52 and a beta of 1.63. Alliance Data Systems has a 1-year low of $133.56 and a 1-year high of $250.27.

Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share for the quarter, missing the consensus estimate of $4.08 by ($0.42). The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.36 billion. Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. The firm’s revenue was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $5.01 earnings per share. As a group, sell-side analysts expect that Alliance Data Systems will post 18.64 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th will be paid a dividend of $0.63 per share. The ex-dividend date is Tuesday, September 3rd. This represents a $2.52 annualized dividend and a dividend yield of 1.66%. Alliance Data Systems’s dividend payout ratio is presently 11.69%.

Alliance Data Systems announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, July 9th that allows the company to buyback $1.10 billion in shares. This buyback authorization allows the business services provider to purchase up to 14.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

A number of research firms recently commented on ADS. BMO Capital Markets set a $32.00 price target on Axalta Coating Systems and gave the stock a hold rating in a research note on Friday, April 26th. William Blair reiterated a buy rating on shares of Albireo Pharma in a research note on Monday, July 15th. Oppenheimer began coverage on Pareteum in a research note on Friday, April 26th. They issued an outperform rating and a $7.00 price target for the company. SunTrust Banks decreased their price target on Broadcom to $307.00 and set a buy rating for the company in a research note on Friday, June 14th. Finally, Zacks Investment Research upgraded Triple-S Management from a hold rating to a buy rating and set a $26.00 price target for the company in a research note on Monday, April 29th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and eight have given a buy rating to the company. Alliance Data Systems has an average rating of Hold and a consensus target price of $218.92.

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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Earnings History and Estimates for Alliance Data Systems (NYSE:ADS)

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