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Alliance Data (ADS) Q2 Earnings Beat Estimates, Tweaks View

Alliance Data Systems Corporation’s ADS operating earnings of $3.59 per share in the second quarter of 2017 surpassed the Zacks Consensus Estimate of $3.47. Earnings improved 4.3% year over year.

All the segments – Epsilon, LoyaltyOne and Card Services delivered a solid performance in the quarter.

Behind the Headlines

Alliance Data’s revenues came in at $1.82 billion, up 4% year over year. The top line missed the Zacks Consensus Estimate of $1.84 billion.

Operating expenses increased 2.9% year over year to $1.5 billion, primarily due to a rise in provision for loan losses. Operating income improved 9.6% year over year to $351.4 million.

However, adjusted earnings before interest tax depreciation and amortization (EBITDA) were $499 million, up 6% year over year.

Alliance Data Systems Corporation Price, Consensus and EPS Surprise

Alliance Data Systems Corporation Price, Consensus and EPS Surprise | Alliance Data Systems Corporation Quote

Segment Update

LoyaltyOne: Revenues totaled $280 million, down 21% year over year. Adjusted EBITDA declined 28% to $56.7 million. AIR MILES’ saw its reward miles issued decreased 1% while redeemed declined 13%.

Epsilon: Revenues were $543.3...


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