Alliance Data Systems (ADS) Tops Q1 EPS by $2.58

Alliance Data Systems (NYSE: ADS) reported Q1 EPS of $5.74, $2.58 better than the analyst estimate of $3.16. Revenue for the quarter came in at $1.09 billion versus the consensus estimate of $1.06 billion.

2021 OUTLOOK

"We remain keenly focused on balancing growth and profitability to ensure the sustainable economics of our portfolio. In 2021, we expect our credit sales to increase at a high-single- to low-double-digit rate, with a net loss rate below 6% for the year and in the mid-to-upper 5% range in the second quarter of 2021," said Mr. Andretta. "Based on our current visibility, credit card and loan receivables at year-end 2021 are projected to be in line with year-end 2020 levels, although average receivables are expected to be down mid-single-digits for the year, reflecting year-over-year pressure in the first half of 2021. We expect to resume high-single-digit to low-double-digit card receivables growth as we enter 2022. Total revenue is anticipated to be down low-single-digits compared to 2020 as the impact from lower receivables is partially offset by improving revenue from LoyaltyOne and the Bread acquisition. We expect efficiencies to enable us to keep total expenses excluding provision for loan loss flat year-over-year while we continue to fund initiatives to better position the Company for future growth. For 2021, our expense forecast includes over $100 million of digital innovation and technology enhancement and $50 million in marketing investments to support growth and a return to positive operating leverage in 2022."

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

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