Why Alliance Data (ADS) Is Gaining Today

NEW YORK (TheStreet) -- Alliance Data (ADS) shares gained 9.9% to $257.49 Thursday after posting quarterly results that beat on earnings and revenue.

In its fourth-quarter, Alliance Data reported earnings of $2.39 a share. The Capital IQ Consensus Estimate called for earnings of $2.33 a share, meaning the company beat estimates by 6 cents. Revenue rose 17.4% to $1.14 billion in the quarter, slightly beating analyst estimates of $1.13 billion.

For the first-quarter Alliance Data expects earnings of about $2.70 a share, and about $1.25 billion in revenue, compared to analyst estimates of $2.99 a share in earnings, and $1.17 billion in revenue.

For the full year 2014 the company expects earnings of $12.20 a share, compared to analyst expectations of $12.24 a share. Alliance Data expects revenue of about $5.14 billion in 2014, while analysts estimate $4.81 billion.

Must read: Alliance Data Systems Corporation (ADS) Is Today's Unusual Social Activity Stock

TheStreet Ratings team rates ALLIANCE DATA SYSTEMS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALLIANCE DATA SYSTEMS CORP (ADS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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