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Alliance Data Profit Soars

The stock jumps 12%.

Alliance Data Systems


said its first-quarter earnings rose 52% from the year-ago period, boosted by strong performance across all of its business segments.

The Dallas-based company earned $56.4 million, or 69 cents a share, in the quarter, compared with $37.2 million, or 40 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 62 cents a share in the most recent quarter.

First-quarter revenue rose 27% from a year ago to $477.2 million.

The company expects cash earnings of at least 62 cents a share for the second quarter and $2.60 a share for this year, compared with its earlier guidance of $2.36 a share. Adjusted earnings are estimated to be about $440 million, instead of previous guidance of $400 million. Revenue is expected to be at least $1.78 billion, up from the previous guidance of $1.68 billion. Analysts are expecting revenue of $1.7 billion for the full year.

''The quarter's record performance was driven by double-digit growth balanced across all three of our business segments," the company said. "The quarter's results were driven by the continued overperformance of our marketing services segment, led by organic growth at over 20 percent in our Canadian loyalty business, which operates the Air Miles Reward Program."

First-quarter operating income rose 59.6% from a year ago to $99.4 million and operating margin increased 426 basis points to 20.8%.

The company's cash earnings were $69.2 million, or 85 cents a share, in the quarter, compared with $44.5 million, or 52 cents a share, a year ago.

The company's stock rose $5.86 early Thursday to $54.

This story was created through a joint venture between and IRIS.