Fast-Moving Stock: Alliance Data Systems Corporation (NYSE: ADS)

On Wednesday, Alliance Data Systems Corporation (NYSE: ADS) spotted trading -52.18% off 52-week high price. On the other end, the stock has been noted 1.26% away from the low price over the last 52-weeks. The stock changed -1.14% to recent value of $102.79. The stock transacted 1070363 shares during most recent day however it has an average volume of 1079.87K shares. The company has 51.1M of outstanding shares and 48.42M shares were floated in the market.

Alliance Data Systems Corporation (ADS) recently reported its results for the third quarter, ended September 30, 2019.

“Material progress has been made in executing our planned plan and business transformation initiatives.  As predictable in Card Services, our third quarter results reflect performance improvements across several key metrics, including net charge-offs, credit card and loan receivables and credit sales.  For instance, recent new business wins contributed 6% to year-over-year growth in stated credit sales.  This represents the first quarter of positive year-over-year comparisons for this line of business in 2019,” commented Melisa Miller, president and chief executive officer of Alliance Data.

“We continue to build on our foundation for a return to earnings growth, and we are laser-focused on streamlining our operating model.  This includes reducing our cost structure, which we expect will result in important savings while continuing to deliver differentiated solutions to the marketplace. We expect ongoing cost reduction initiatives to produce over $100M of incremental, annualized cost savings, further enhancing our financial performance.

“We have completed a number of our planned initiatives—to include the Epsilon® divestiture, certain portfolio sales and corporate restructurings.  With a view forward, we believe our business will emerge well-positioned to return to more consistent, sustainable earnings growth. We are uniquely positioned in the markets we serve, and our sizeable addressable market and lower operating costs will set the stage for performance improvement in 2020 and beyond,” Miller concluded.


Recent prime rate changes, an adjustment to the value of certain held-for-sale credit card receivable portfolios, and lower average receivables caused an aggregate reduction in predictable core EPS.  As a result of these factors, the Company has lowered its full-year 2019 core EPS guidance range to $16.75 to $17.00 (assumes no further interest rate reductions from the Federal Open Market Committee).  On a pro forma basis, which assumes the full year effect of the lower share count, debt retirement and company-wide expense reductions, predictable core EPS guidance would range from $20.50 to $20.75.

Since the receipt of the $3.5B net proceeds from the Company’s sale of its Epsilon section, Alliance Data has stepped down $2.4B of corporate debt, which is predictable to yield annualized interest cost savings of about $120M.

Additionally, as before reported, Alliance Data successfully completed a “modified Dutch Auction” tender offer, repurchasing 5,050,505 shares at a price of $148.50 per share. The aggregate cost of that transaction was about $750M, exclusive of fees and expenses related to the tender offer. The Company expects to opportunistically allocate the remaining net proceeds of about $350M based on management’s assessment of potential investments to accelerate organic growth, its cash requirements, and the benefit from additional share buybacks.

Looking ahead, management continues to have confidence in the successful execution of its business strategy transformation and streamlining efforts, with the majority of initiatives completed or in progress. These initiatives, designed to provide a leaner, simplified operating model for all of Alliance Data’s businesses, will position the company for low-single digit revenue growth in 2020 and mid-twenties to high-twenties year-over-year improvement in our core EPS.

Its earnings per share (EPS) expected to touch remained 30.80% for this year while earning per share for the next 5-years is expected to reach at 2.56%. ADS has a gross margin of 47.60% and an operating margin of 27.00% while its profit margin remained 14.20% for the last 12 months.   According to the most recent quarter its current ratio was 2.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -13.70% from the mean of 20 days, -17.72% from mean of 50 days SMA and performed -31.54% from mean of 200 days price. Company’s performance for the week was -16.94%, -18.45% for month and YTD performance remained -31.51%.


Ronald Hemphill

Ronald Hemphill– Business Stories My Name is Ronald Hemphill and I am also the main source from the ‘’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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