Alliance Data Systems (ADS) Issues FY18 Earnings Guidance
Alliance Data Systems (NYSE:ADS) updated its FY18 earnings guidance on Thursday. The company provided EPS guidance of 22.50-23.0 for the period, compared to the Thomson Reuters consensus EPS estimate of $22.73. The company issued revenue guidance of $8.2 billion (pro forma), compared to the consensus revenue estimate of $8.09 billion.Alliance Data Systems also updated its FY 2018 guidance to $22.50-23.00 EPS.
A number of equities research analysts have recently issued reports on the stock. ValuEngine upgraded shares of Alliance Data Systems from a strong sell rating to a sell rating in a report on Thursday, July 12th. Stephens restated a buy rating and set a $288.00 price target on shares of Alliance Data Systems in a report on Friday, July 20th. Zacks Investment Research lowered shares of Alliance Data Systems from a buy rating to a hold rating in a report on Thursday, August 2nd. Jefferies Financial Group reaffirmed a buy rating and set a $280.00 price objective on shares of Alliance Data Systems in a research report on Tuesday, August 7th. Finally, Oppenheimer reaffirmed a hold rating on shares of Alliance Data Systems in a research report on Thursday, July 19th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and twelve have issued a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $262.06.
ADS traded up $5.18 on Thursday, reaching $216.64. 27,643 shares of the company traded hands, compared to its average volume of 584,412. Alliance Data Systems has a 52-week low of $192.02 and a 52-week high of $278.33. The company has a market capitalization of $12.98 billion, a PE ratio of 11.64, a PEG ratio of 0.89 and a beta of 1.76. The company has a debt-to-equity ratio of 7.25, a quick ratio of 2.12 and a current ratio of 2.14.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 19th. Shareholders of record on Wednesday, November 14th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.05%. Alliance Data Systems’s dividend payout ratio is 12.47%.
Alliance Data Systems announced that its board has approved a stock buyback program on Monday, July 30th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the business services provider to purchase up to 4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.
In other Alliance Data Systems news, CFO Charles L. Horn sold 16,035 shares of the business’s stock in a transaction that occurred on Tuesday, July 24th. The shares were sold at an average price of $232.58, for a total value of $3,729,420.30. Following the completion of the sale, the chief financial officer now directly owns 28,688 shares of the company’s stock, valued at $6,672,255.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Bryan A. Pearson sold 3,424 shares of the business’s stock in a transaction that occurred on Tuesday, August 14th. The stock was sold at an average price of $231.67, for a total transaction of $793,238.08. The disclosure for this sale can be found here. Insiders own 2.60% 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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