Nomura Securities Maintains a 'Neutral' on Alliance Data Systems (ADS); Another Beat & Raise (ex-Phantom Shares)
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Price: $56.80 --0%
Rating Summary:
14 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Alliance Data Systems (NYSE: ADS) price target of $115.00.
Analyst, Bill Carcache, said, "ADS 1Q12 core EPS came in at $2.38 (versus our estimate of $2.26 and consensus of $2.19), up 17% YoY. The beat was driven largely by higher-than-expected revenue growth at LoyaltyOne and lower-than-expected funding costs in Private Label, partially offset by weaker-than-expected adjusted EBITDA growth at Epsilon...Core earnings guidance was raised from $511 million to $536 million, roughly in line with our estimate of $535 million. The company did not raise its core EPS guidance of $8.45, due to incremental phantom shares included in the share count."
"We note that much of the LoyaltyOne revenue driven beat was due to increased redemption activity (redemptions increased +26% this quarter after declining for two consecutive quarters) following recent changes in the AIR MILES program."
For an analyst ratings summary and ratings history on Alliance Data Systems click here. For more ratings news on Alliance Data Systems click here.
Shares of Alliance Data Systems closed at $127.34 yesterday.
Analyst, Bill Carcache, said, "ADS 1Q12 core EPS came in at $2.38 (versus our estimate of $2.26 and consensus of $2.19), up 17% YoY. The beat was driven largely by higher-than-expected revenue growth at LoyaltyOne and lower-than-expected funding costs in Private Label, partially offset by weaker-than-expected adjusted EBITDA growth at Epsilon...Core earnings guidance was raised from $511 million to $536 million, roughly in line with our estimate of $535 million. The company did not raise its core EPS guidance of $8.45, due to incremental phantom shares included in the share count."
"We note that much of the LoyaltyOne revenue driven beat was due to increased redemption activity (redemptions increased +26% this quarter after declining for two consecutive quarters) following recent changes in the AIR MILES program."
For an analyst ratings summary and ratings history on Alliance Data Systems click here. For more ratings news on Alliance Data Systems click here.
Shares of Alliance Data Systems closed at $127.34 yesterday.
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