Alliance Data's (ADS) July Receivables Rise In Card Business
Zacks Investment Research | Aug 15, 2017 09:52PM ET
Alliance Data Systems Corporation (NYSE:ADS) recently reported an increase in average receivables in its Card Services segment for the month of July.
This Plano, TX-based company recorded average receivables of $16.1 billion for the same month, up 16.7% year over year. For the seven-month period ended July 2017, average receivables increased 16.3% year over year to $15.8 billion.
Net charge-offs came in at $81.1 million for the reported month, while for the seven-month period ended July 2017, net charge-offs were $573.0 million.
As a percentage of average receivables, net charge-offs for the month and the seven-month period ended July 2017, were 6.0% and 6.2%, respectively. The company had reported 5.4% and 5.2%, respectively for the same, in the prior-year period.
This Zacks Rank #3 (Hold) financial transaction service provider stated that the net loss rates are estimated to be lower in the second half of 2017 compared with the first half. Also, net loss rates are in line with Alliance Data’s full-year 2017 and 2018 consolidated guidance.
Alliance Data has rallied 11.16% in a year’s time, underperforming the Zacks Investment Research
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