Alliance Data Lowers FY18 Revenue Forecast; Affirms Core Earnings Outlook

(RTTNews) - While reporting its third-quarter financial results today, Alliance Data Systems Corp. (ADS) lowered its fiscal 2018 revenue outlook, citing continued weakness in certain Epsilon product offerings and the initial impact from strategic efforts.

The company now forecasts fiscal 2018 reported revenue of about $7.9 billion and pro forma revenue of about $8.2 billion. Both were lowered from prior guidance.

However, the company affirmed its outlook for fiscal 2018 core earnings per share of $22.50 to $23.00, representing a 16 to 19 percent increase over 2017.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $22.74 per share on revenues of $8.08 billion for the year. Analysts' estimates typically exclude special items.

For fiscal 2019, Alliance Data said it will provide guidance in January 2019 as part of its fourth-quarter earnings release, which will reflect details of the company's anticipated strategic re-alignment.