Alliance Data Q2 Results Top Estimates; Lifts FY16 Forecast Above Market

(RTTNews) - Alliance Data Systems Corp. (ADS), a provider of data-driven marketing and loyalty solutions, reported Thursday that its second-quarter net income attributable to stockholders increased to $140.7 million from last year's $131.3 million.

Meanwhile, earnings per share decreased 41 percent to $1.24 from $2.11 last year, due to $1.14 in accretion charges related to the purchase of the remaining 20 percent interest in BrandLoyalty. Shares count was down 5 percent.

Core earnings per share were $3.68 for the second quarter of 2016, compared to $3.32 a year ago.

On average, 24 analysts polled by Thomson Reuters expected earnings of $3.59 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA decreased 9 percent compared to the second quarter of 2015,

Revenue climbed 17 percent to $1.749 billion from $1.501 billion in the prior year. Analysts were looking for revenues of $1.64 billion.

Ed Heffernan, president and chief executive officer, said, "What we saw in the second quarter was an early acceleration across the company as revenue and core EPS surged 17 percent and 11 percent, respectively. This strong performance makes our previous full-year guidance of 10 percent and 11 percent growth in revenue and core EPS, respectively, seem conservative. As such, we are raising guidance on both."

For the year, the company now expects revenues to grow 11 percent to $7.15 billion and core earnings per share to grow 12 percent to $16.85, both as compared to 2015.

Analysts now expects revenues of $7.09 billion and earnings of $16.78 per share for the year.

For the third quarter, the company expects $1.78 billion in revenue and $4.42 in core earnings per share, both representing a 12 percent increase from last year.

Analysts expects revenues of $1.79 billion and earnings of $4.58 per share for the quarter.