Alliance Data Systems (ADS) Tops Q4 EPS by 126c, Slight Miss on Revenues; Lowers FY18 Revenue Guidance Below Consensus on 'Reclassification of Air Miles'

January 25, 2018 7:40 AM EST

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Alliance Data Systems (NYSE: ADS) reported Q4 EPS of $6.26, $1.26 better than the analyst estimate of $5.00. Revenue for the quarter came in at $2.11 billion versus the consensus estimate of $2.15 billion.

2018 Updated Guidance

  • Revenue of $8.35 billion, representing an 8 percent increase. Original guidance of $8.7 billion reduced for approximately $350 million accounting reclassification for AIR MILES under the new revenue recognition standard, which went into effect January 1, 2018 (change to a net versus gross presentation)
  • Core EPS of $22.50 to $23.00, representing a 16 to 19 percent increase over 2017.

Highlights for 2017 are:

  • Revenue of $7.72 billion - $7.8 billion adjusted for (~$80) million of hurricane impact
  • Core EPS of $18.33 - excluding the net tax benefit - exceeding guidance of $18.10
  • AIR MILESĀ® achieved profitability targets
  • Epsilon\'s Technology Platform offering returned to growth
  • Card Services\' delinquency wedge effectively closed when adjusted for hurricane impacts
  • Cash dividend increased 10 percent to $0.57 starting in first quarter of 2018
  • Positive impact of tax reform, net of initiatives - $1.02 in 2017 and $1.00 to $1.50 in 2018

GUIDANCE:

Alliance Data Systems sees Q1 2018 EPS of $22.50-$23.00, versus the consensus of $22.65. Alliance Data Systems sees Q1 2018 revenue of $8.35 billion, versus the consensus of $8.6 billion.

For earnings history and earnings-related data on Alliance Data Systems (ADS) click here.



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