Alliance Data (ADS) To Report Q4 Earnings: What's In Store?
Zacks Investment Research | Jan 27, 2020 10:34PM ET
Alliance Data Systems Corporation (NYSE:ADS) is slated to report fourth-quarter 2019 results on Jan 30.
The Zacks Consensus Estimate for revenues is pegged at $1.5 billion, indicating a decline of 26.9% from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pegged at $4.13, indicating 39.3% decrease from the year-ago quarter's reported number.
Let’s see how things have shaped up for this announcement.
Alliance Data’s fourth-quarter results are likely to benefit from strong performance of Card Services and LoyaltyOne segments.
Card Service, accounting for more than half of the company’s revenues, is likely to have benefited from deal wins from both new and existing clients, which diversified the portfolio into high-growth verticals. Loss and delinquency rates are expected to have declined. The Zacks Consensus Estimate for fourth-quarter average receivable is $18.5 billion, indicating an increase of 10.8% from the year-ago reported figure.
The Zacks Consensus Estimate for EBITDA is pegged at $264 million, indicating a decline of 38.2% from the year-ago reported figure. Revenues are estimated to be $1.2 billion, implying an increase of 6.2% from the year-ago quarter reported figure.
LoyaltyOne is expected to have benefited from BrandLoyalty, driven by growth across Europe, Asia, the United States as well as the company’s expansion efforts in Canada. Revenues are estimated to be $313 million, indicating a decrease of 6% from the year-ago quarter reported figure. The Zacks Consensus Estimate for EBITDA is pegged at $63 million, indicating a decline of 6.5% from the year-ago reported figure.
However, expenses are likely to have increased due to higher cost of operations, general and administrative expense, which might weigh have weighed on operating margins.
The company’s share buyback activity is likely to have aided the bottom line.
The company delivered negative earnings surprise in each of the last two reported quarters of 2019.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Alliance Data this time around. The combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.