Alliance Data Systems Q1 Profit Increases; Lifts 2014 Outlook - Quick Facts

(RTTNews) - Alliance Data Systems Corp. (ADS), a provider of data-driven marketing and loyalty solutions, reported that net income attributable to stockholders for the first-quarter ended March 31, 2014 increased to $137.4 million from last year's $129.0 million, with earnings per share improving to $2.08 from $1.92 in the same quarter last year.

Core earnings attributable to stockholders was $184.5 million, up from $171.8 million in the year ago quarter. Core earnings per share was $2.79, up from $2.55 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $2.72 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose to $1.233 billion from $1.053 billion in the prior year quarter. Twenty analysts estimated revenues of $1.26 billion for the quarter.

For the second quarter of 2014, the company expects approximately $1.25 billion in revenue and $2.70 in core earnings per share, increases of 22 percent (9 percent organic) and 12 percent, respectively. Analysts expect the company to report earnings of $2.93 per share and revenues of $1.24 billion for the second quarter.

It expects acceleration in core earnings per share growth for the remainder of 2014 as the diluted share drops in conjunction with the maturity of the $345 million convertible notes in May 2014.

The company raised 2014 guidance from $5.14 billion to $5.25 billion in revenue, and from $12.20 to $12.25 in core earnings per share. The revised guidance reflects revenue and core earnings per share increases of 22 percent (9 percent organic) and 22 percent, respectively, for 2014.